Businesses that fail to account for implicit costs, like the strawberry farmer, Hiroshi Fujishige, who failed to consider the enormous opportunity of selling his property to Disneyland, will
A. Make higher-than-normal profits.
B. Make more money when they shut down.
C. Have to increase revenues in order to stay in business.
D. Go out of business immediately.
Answer: B
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Which of the following would most likely cause a job to command a compensating wage differential?
a. There are barriers to the entry of new workers into the job market. b. The job is more dangerous than most other occupations. c. Wage rigidity prevents the wage rate from falling to the equilibrium level. d. There has been an increase in the price of another input that is substitutable for labor. e. The job market is dominated by one large firm.
Economists speaking like scientists make
a. positive statements. b. prescriptive statements. c. claims about how the world should be. d. More than one of the above is correct.
Why would a high-wage nation oppose immigration?
What will be an ideal response?
Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. Which technology is the most labor intensive?
A. A B. B C. C D. D