The social (or true) cost of producing a good is derived by
a. adding external cost to private cost
b. subtracting private cost from external cost
c. subtracting external cost from private cost
d. measuring private cost alone
e. measuring external cost alone
A
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Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect
A) the unemployment rate to fall. B) the unemployment rate to rise. C) the labor force participation rate to fall. D) no change in the unemployment rate or labor force participation rate.
Explain why the education of girls is probably the most cost-effective development investment. Be sure to include in your answer some discussion of at least two of the following: absolute poverty, health and development, fertility, and agriculture
What will be an ideal response?
A key distinction between microeconomics and macroeconomics is the use of monetary policy. Monetary policy is conducted by:
a. local banks. b. a nation’s central bank. c. a nation’s legislative body. d. a state’s legislative body.
Imagine Tom's annual salary as an assistant store manager is $30,000, he owns a building that rents for $10,000 yearly, and his financial assets generate $1,000 per year in interest. One day, after deciding to be his own boss, he quits his job, evicts his tenants, and uses his financial assets to establish a bicycle repair shop. To run the business, he outlays $15,000 in cash to cover all the costs involved with running the business, and earns revenues of $50,000. What are Tom's economic profits?
A. $24,000 B. $35,000 C. -$6,000 D. $50,000