Refer to the information provided in Figure 19.1 below to answer the question(s) that follow. 
Figure 19.1 Refer to Figure 19.1. Initially after the payroll tax is imposed, the difference in the firm's cost per unit of labor and the workers' take home pay is ________ per hour.
A. $2
B. $3
C. $5
D. $7
Answer: C
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The Bubby Gum factory produces bubble gum. Joanne is one of the employees, and she produces 10 packs of bubble gum per hour. Joanne's money wage rate is $12 per hour. If a packet of bubble gum sells for $1.00, then Joanne ________ because ________
A) should recommend that the Bubby Gum company should decrease the price of the bubble gum ; it would sell more and bring a larger profit B) is creating a $2.00 per hour profit for the firm; her real wage rate is more than her output per hour C) is creating a $2.00 per hour loss for the firm; her real wage rate is more than her output per hour D) should ask for a raise in pay; then her real wage would be less than her output per hour E) is the last person the Bubby Gump company will employ; an additional hire would produce equal the amount of additional labor to real wage per hour
Because it is the only firm operating in a particular market, a monopolist is guaranteed to earn an economic profit
Indicate whether the statement is true or false
Total planned consumption
a. exceeds total income at very low levels of output. b. is always less than total income. c. exceeds total income at very high levels of output. d. always equals total income.
Adverse selection occurs in the insurance market because:
A. both the buyer and the seller have incomplete information. B. the buyer has more information than the seller. C. the seller has more information than the buyer. D. Any of these could be the cause of adverse selection in insurance market.