For an individual who has special talent as an entertainer, a large proportion of his salary can be considered
A) a fixed cost.
B) economic rent.
C) a payment below opportunity cost.
D) non-taxable income.
Answer: B) economic rent.
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Which of the following is a reason why it is difficult to estimate the extent of economic discrimination in the labor market?
A) Differences in wages can be attributed to many other factors as well, such as differences in productivity and preferences. B) Ultimately, employers who discriminate cannot remain profitable. C) Employers who discriminate pay an economic penalty. D) Employers who discriminate are likely to do so in overt ways such as awarding some workers with benefits-in-kind.
Which of the following holds true at the chosen level of output in the long run for firms in a perfectly competitive market?
A. P = minimum AVC B. P > MC C. MR > MC D. MR = MC
The difference between economists speaking as scientists or policy advisers boil down to the difference between
a. assumptions and theories. b. true statements and false statements. c. specific statements and general statements. d. positive statements and normative statements.
When quantity demanded has increased at every price, it might be because
a. the number of buyers in the market has decreased. b. income has increased, and the good is an inferior good. c. the costs incurred by sellers producing the good have decreased. d. the price of a complementary good has decreased.