The opportunity cost of owner-provided labor is the
A) wage rate paid to the owner.
B) explicit part of the wage rate paid to the owner.
C) salary the owner could have made if she worked at her best alternative job.
D) profit after all of the bills have been paid.
Answer: C
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
An effective price support ________ producers and ________ a deadweight loss
A) has no effect on; does not create B) benefits; creates C) harms; creates D) benefits; does not create E) harms; does not create
Given that all countries have the same Cobb-Douglas production function, i.e. Y/N = (K/N)b, where b = 0.5, then a ten-fold difference in per capita income requires a difference in capital per capita by a factor of
A) 10. B) 100. C) 1000. D) 10,000.
Marginal tax rates supply reliable measures of tax progressiveness.
A. True B. False C. Uncertain