Refer to the graph shown. Without government intervention, market forces would result in:
A. 500 labor hours demanded, 900 labor hours supplied, and a wage rate of $7.25 per hour.
B. 500 labor hours demanded, 500 labor hours supplied, and a wage rate of $7.25 per hour.
C. 800 labor hours demanded, 800 labor hours supplied, and a wage rate of $6.50 per hour.
D. 1,200 labor hours demanded, 500 labor hours supplied, and a wage rate of $4.50 per hour.
Answer: C
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The simple model of competition among political parties long used by political scientists tends to lead to the practical solution of selecting the
A) optimal tariff. B) prohibitive tariff. C) zero (free-trade) tariff. D) the tariff rate favored by the median voter. E) the tariff rate supported by exporters.
A firm's opportunity cost of using resources provided by the firm's owners is called:
a. sunk costs. b. fixed costs. c. explicit costs. d. implicit costs. e. entrepreneurial costs.