A famous opera star made $2 million per year. He said he would rather sell insurance if he couldn't make more than $500,000 per year. If he is telling the truth, how much is he being paid in economic rent?
A. $2.5 million
B. $2.0 million
C. $1.5 million
D. $500,000
Answer: C
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According to the real business cycle theory, the supply side shock from dramatic increases in oil prices in the 1970s led to higher unemployment because
A) when the real wage, W/P, fell, workers chose leisure. B) when the real wage, W/P, rose, workers chose leisure. C) workers increase Pe. D) None of the above.
For a given shift of the aggregate demand curve, the ________ the short-run aggregate supply curve, the ________ the increase in the real GDP and the ________ the increase in the price level
a. steeper; larger; smaller b. steeper; smaller; larger c. more flat; smaller; smaller d. steeper; larger; larger
In the standard Becker model of discrimination, each firm is associated with a discrimination coefficient of d > 0 and acts as if the wage paid to blacks is wB(1 + d) where wB is the actual hourly wage paid to blacks. Assume whites and blacks are equally productive. The going wage for whites is $16 per hour while the going wage for blacks is $10 per hour. Which of the following will characterize the labor market equilibrium when some employers have discriminatory preferences against hiring black workers?
A. An employer with a discrimination coefficient of 2.2 will hire only black workers. B. All firms will earn the same amount of profit regardless of their discriminatory preferences. C. All discriminating employers will hire only white workers. D. An employer with a discrimination coefficient of 0.8 will hire only white workers. E. Any employer with a positive discrimination coefficient will hire only white workers.
Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, what is its marginal revenue from the 600th unit it sells?
A. -$1 B. $1 C. $1.50 D. $100