If the real wage decreases, the opportunity cost of working in the home will
a. increase
b. decrease
c. not be affected
d. increase as long as worker productivity also rises
e. increase only if households want to maintain their standard of living
B
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The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the producer surplus?
A) area A B) area B C) area C D) area D E) area E
Suppose that recycling rubber for sneakers creates an external benefit of $2.00 per ton of rubber. There are no external costs. The efficient amount of rubber will be recycled when the government creates a
A) subsidy of more than $2.00 per ton of rubber. B) subsidy of $2.00 per ton of rubber. C) tax of more than $2.00 per ton of rubber. D) tax of $2.00 per ton of rubber.
In economics, aggregation refers to
a. collecting sample specimens for reclassification. b. using small stones to pave an artistic walkway. c. combining many markets into one overall economy. d. using large computers to solve economic problems.
The potential for a financial breakdown at large institutions to spread throughout the financial system is called
A. a systemic risk. B. a too-large-to-fail problem. C. a moral hazard. D. an averse selection problem.