A worker can always build a chair in four hours. If a chair sells for $40 in a perfectly competitive market, then the equilibrium wage per hour in a perfectly competitive labor market is
A. $4.
B. $10.
C. $40.
D. $160.
Answer: B
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In the traditional Keynesian model, if the government increases government spending,
A) the C + I + G + X line will shift up but the aggregate demand curve will not shift. B) the C + I + G + X line will shift down but the aggregate demand curve will not shift. C) the C + I + G + X line will shift up and the aggregate demand curve will shift to the right. D) the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.
A dedicated professor loves being in the classroom and would teach for $50,000 per year, but he is actually paid $60,000 per year. This individual
A) receives economic rent of $1100,000. B) has an opportunity cost of $110,000. C) has an opportunity cost of $50,000. D) receives economic rent of $10,000.
The primary functions of money are:
a. velocity, liquidity, and transactions. b. speculative demand, measure of value, and precautionary demand. c. a medium of exchange, a unit of account, and a store of value. d. a store of value, heterogeneity, and a medium of exchange. e. currency value, fiat value, and accepted value.
What type of protection does U.S. law grant the creator of a book, film, or piece of music?
A) A copyright, which grants exclusive rights to the creator for 20 years after the work is created. B) A patent, which grants the exclusive right to use the creation during the creator's lifetime and to his or her heirs for 70 years after the creator's death. C) A public franchise, which grants the exclusive right to use the creation during the creator's lifetime and to his or her heirs for 70 years after the creator's death. D) A copyright, which grants the exclusive right to use the creation during the creator's lifetime and to his or her heirs for 70 years after the creator's death.