Two friends, Diane and Stan, own and run a bar. Diane tends bar on Monday, Wednesday, and Friday and receives a wage in addition to tips. Stan tends bar on Tuesday, Thursday, and Saturday and receives only tips. Which of the following represents an implicit cost of operating the bar?
a. Diane's wage
b. Stan's time
c. Diane's tips
d. Stan's tips
e. both Diane's and Stan's tips
B
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What are reserves? Discuss the various types of reserves used in the U.S. banking system
What will be an ideal response?
The figure above shows the market for a good with an external benefit. When 6 units are produced, marginal social benefit equals ________ and marginal external benefit equals ________
A) $200; $150 B) $350; $200 C) $200; $50 D) $350; $150 E) $150; $250
Which of the following is a positive economic statement?
A) The standard of living in the United States should be higher. B) The U.S. government should not have bailed out U.S. auto manufacturers. C) If the price of iPhones falls, a larger quantity of iPhones will be purchased. D) The government should revamp the health care system.
When marginal private cost is less than marginal social cost,
A. a public good exists. B. a negative externality exists. C. a positive externality exists. D. negative economic profits are made. E. a and d