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Implicit costs are the opportunity costs of using the resources of a. outsiders. b. owners. c. banks. d. retained earnings.

Consider Exhibit 14, which shows the graph of a perfectly competitive firm in the short run. a. If the firm’s demand curve is MR3, does the firm earn an economic profit or incur a loss? b. Which demand curve(s) indicates the firm incurs a loss? c. Which demand curve(s) indicates the firm would shut down? d.

The owner of a restaurant will hire waiters if the a. additional labor’s pay is close to the minimum wage. b. marginal product is at the maximum. c. additional work of the employees adds more to total revenue than to costs. d. waiters do not belong to a union.

A union can influence the equilibrium wage rate by a. featherbedding. b. requiring longer apprenticeships. c. favoring trade restrictions on foreign products. d. all of the above. e. none of the above.

The extra cost of obtaining each additional unit of a factor of production is called the marginal a. physical product. b. revenue product. c. factor cost. d. implicit cost.

In which of the following market structures is the firm not a price taker in the factor market? a. Oligopoly b. Monopsony c. Monopoly d. Perfect competition

To maximize profits, a monopsonist will hire the quantity of labor to the point where the marginal factor cost is equal to a. marginal physical product. b. marginal revenue product. c. total revenue product. d. any of the above. Q409: BigBiz, a local monopsonist, currently hires 50 workers and pays them $6 per hour. To

If the labor market shown in Exhibit 12 is amonopsony, the wage rate and number of workers employed will be determined at point a. A. b. W. c. C. d. Y. e. Z.

A monopsonist in equilibrium has a marginal revenue product of $10 per worker hour. Its equilibrium wage rate must be a. less than $10. b. equal to $10. c. greater than $10. d. equal to $5.

The current approach to welfare reform is to cut the growth of welfare by shifting control from the federal government to the states. The idea is that because state and local officials are closer to the people, welfare programs will improve. Analyze the results presented above based on work disincentives, inefficiencies, and inequities.