Refer to Figure 15-10. What is the area that represents producer surplus under a monopoly?
A) the triangle 0P3H B) the rectangle P1P3HF
C) the trapezium 0P1FH D) the triangle 0P2E
C
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If the economy is experiencing an inflationary gap, Keynesian economists advocate allowing flexible wages to shift the short-run aggregate supply curve (SRAC) upward and restore full employment
a. True b. False Indicate whether the statement is true or false
In the circular-flow diagram, firms produce
a. goods and services using factors of production. b. output using inputs. c. factors of production using goods and services. d. Both (a) and (b) are correct.
With a tax of $12, hours of work become
Suppose the supply of labor is W – t = 10H, where W is the gross wage, t is the tax (in dollars), and H is labor hours. The demand for labor is W = 120 – 2H. a) H = 8 b) H = 9 c) H = 10 d) H = 11 e) H = 12
Which of the following is NOT an explicit cost?
A) taxes B) rent C) wages D) opportunity cost of using an owner's savings