Business lobbyists tend to argue against a living wage law by arguing that it is a price:
A. floor that will cause a shortage of labor.
B. ceiling that will cause a shortage of labor.
C. ceiling that will cause a surplus of labor.
D. floor that will cause a surplus of labor.
Answer: D
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For firms that sell one product in a perfectly competitive market, the market price is:
A. constant, regardless of quantity sold. B. equal to average revenue for a firm. C. equal to marginal revenue for a firm. D. All of these are true.
Socialism is an economic system characterized by:
a. private ownership of resources and market decision-making. b. government ownership of resources and centralized decision-making. c. cooperation, sharing, and little central government. d. a complex structure of rules and traditions that dictates decision-making.
The tournament effect
A) may help explain why CEO are highly paid. B) why most golfers are below average. C) explains why the behavior of total revenue often patterns lottery sales. D) may help explain why CEOs are generally viewed as dishonest by the public.
Monetary payments to nonowners of a firm are called:
A. implicit costs. B. accounting costs. C. explicit costs. D. economic costs.