What is meant by the term economic profits?
a. total revenues minus explicit and implicit costs
b. total revenues plus implicit and explicit costs
c. average total costs minus total implicit costs
d. total explicit costs minus total revenues
a. total revenues minus explicit and implicit costs
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The above figure shows the demand and supply curves for high-skilled and low-skilled labor. The wage rate
A) of high-skilled labor is $7.00 and of low-skilled labor is $6.00. B) of high-skilled labor is $9.00 and of low-skilled labor is $7.00. C) of high-skilled labor is $6.00 and of low-skilled labor is $4.00. D) of high-skilled labor is $9.00 and of low-skilled labor is $4.00.
If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease. B) equality of incomes would increase but efficiency would decrease. C) efficiency would increase but equality of incomes would decrease. D) efficiency and equality of incomes would both increase.
Ceteris paribus means
A) "all variables are independent." B) "other things being equal." C) "some assumptions must be accepted without proof." D) "some theories are not rational."
If Kobe, an NBA star athlete, earns $10 million per year but has no money in the bank, he has a
a. high income and high wealth. b. low income and high wealth. c. high income and low wealth. d. low income and low wealth.