Suppose the marginal benefit the owner of a cherry orchard derives from hiring Lauren to pick cherries is $8 per hour. If the wage rate that Lauren earns is $7 per hour, then the orchard owner's surplus from Lauren's labor is ________ per hour
A) $7
B) $15
C) $1
D) $8
E) $0
C
You might also like to view...
Elasticity computations related to demand carry a minus sign to show that the demand curve is negatively sloped.
Answer the following statement true (T) or false (F)
The IS curve shifts to the right when ________
A) autonomous consumption decreases B) taxes increase C) autonomous investment increases D) all of the above E) none of the above
This factor contributes to the winner's curse
a. your estimate of the value of the object was not the most optimistic b. your bid was not the highest c. there were not many other bidders you had to beat out d. you did not shade your bid enough
Suppose a German bank purchases a U.S. Treasury bond. This transaction would be recorded in the:
a. capital account. b. current account. c. goods trade balance. d. unilateral transfers.