Jayanthi moves her yoga studio from her home to a space she rents in Oakland, California. Holding everything else constant, as a result of this move
A) her explicit cost falls and her implicit cost rises.
B) her implicit cost falls and her explicit cost rises.
C) her economic cost rises.
D) her opportunity cost rises.
Answer: B
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The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Considering only the labeled points, point c is a possible equilibrium
A) only if it is the endowment. B) only if point a is the endowment. C) if either point a or b is the endowment. D) only if point d is the endowment.
Which of the following is TRUE concerning equilibrium in a monopsonistic factor market?
A) The firm uses the efficient level of the input but does not maximize profit. B) The firm maximizes profit but does not use the efficient level of the input. C) The firm maximizes profit and uses the efficient level of the input. D) The firm either maximizes profit or uses the efficient level of the input, but it cannot do both at the same time.
Data from most industrialized countries show that countries with high investment rates (as a percentage of GDP) tend to be countries
A. with the highest rates of inflation. B. with the most unequal income distribution. C. with high rates of economic growth. D. with the lowest rate of national saving.
Which is the distinguishing feature of the standard cobweb model?
A. Real wages steadily increase. B. Capital is not fixed in the short run. C. Payroll taxes create a tax wedge, which in turn increases overall employment levels. D. The firm is a perfectly discriminating monopsonist. E. Wages and employment levels adjust slowly over time.