Mental accounting simplifies the decision-making process because it:
A. limits the calculation of trade-offs.
B. eliminates prices from the decision-making process.
C. values all purchases equally.
D. only weighs benefits and not costs.
Answer: A
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The main item in the current account balance is
A) net interest income. B) net transfers. C) net exports. D) net taxes.
The marginal cost of production that is borne by the entire society is the
A) marginal private cost. B) marginal social cost. C) marginal external cost. D) None of the above answers is correct.
Distinguish economies and diseconomies of scale. How can the extent to which economies and diseconomies of scale explain the size and number of real world firms in an industry?
What will be an ideal response?
Refer to the below table. What would the wage rate be if all the workers could work in all three labor markets, and they get spread out evenly?
Suppose there are only three labor markets (A, B, and C) in the economy and each of these markets is purely competitive. The table below contains the demand (or marginal-revenue-product) schedule for labor in each of these three markets. Assume there are 24 million homogeneous workers in the economy and that one-half of these workers are male and one-half are female
A. $7.00 for females and $13.00 for males
B. $8.00 for females and $11.00 for males
C. $11.00 for females and $11.00 for males
D. $13.00 for females and $13.00 for males