During a recession the:
a. actual budget deficit is smaller than the structural budget deficit.
b. cyclical budget deficit is larger than the structural budget deficit.
c. actual budget deficit is larger than the structural budget deficit.
d. structural budget deficit is larger than the cyclical budget deficit.
e. none of the above.
C
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People who run their own businesses
A) can keep their labor costs down by not hiring any employees. B) have lower labor costs if they dislike working for anyone else than if they don't mind working for others. C) have no labor costs unless the business is incorporated. D) have the same labor costs as people who hire employees to run their businesses.
Which of the following statements is true?
A) The slope of the labor supply curve depends only on the income effect of a wage rate change. B) The income effect and the substitution effect of a wage rate change work in the same direction. C) The income effect and the substitution effect of a wage rate change work in opposite directions. D) The slope of the labor supply curve depends only on the substitution effect of a wage rate change.
Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the efficient quantity?
A. 34,286 B. 131,429 C. 1,200 D. 90,000
Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. All of the resource earnings in market A are opportunity costs. b. All of the resource earnings in both markets are opportunity costs. c. All of the resource earnings in market B are opportunity costs. d. None of the resource earnings in either market is an opportunity cost. e. None of the resource earnings in either market is economic rent.