A new law applied to a competitive market that requires laid off workers be paid a large severance payment will
A) not generate a deadweight loss.
B) increase total welfare.
C) increase consumer surplus in the market.
D) decrease consumer surplus in the market.
D
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People in an open economy who wish to invest can either:
A. invest at home or abroad. B. buy stocks or bonds. C. buy financial assets or durable goods. D. invest in private companies or public companies.
Which of the following represents the opportunity cost of holding money?
A. the interest rate B. liquidity C. the rate of inflation D. none of these
Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs. The restaurant earns $1.3 million in revenues. Based on this information, what is the accounting profit for Laura's Pizza Place?
A) $200,000 B) $400,000 C) $500,000 D) $900,000
While the retirement poverty problem occurs because poor people often cannot save much for retirement, the retirement uncertainty problem occurs because people are not certain if they will live long enough to retire.
Answer the following statement true (T) or false (F)