What is the real cost of putting an unemployed laborer to work raking leaves or digging holes and refilling them during a severe recession? Explain
Please provide the best answer for the statement.
Since an unemployed laborer was not doing anything productive before giving him this menial task, then the real cost of employing the person is zero. In other words, no other production is being sacrificed in order to have this person rake leaves or dig holes. The only real cost is the opportunity cost of the unemployed worker’s leisure. This answer assumes that there are no more productive jobs available to the worker than raking leaves or digging holes that would be suitable for this laborer.
You might also like to view...
A firewood supplier has a very seasonal demand for its product. Its transport trucks lay idle during the warmer parts of the year. It can exploit economies of scope if
a. It merges with a manufacturer of wooden Christmas ornaments b. It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers c. It starts producing other seasonal products that would sell mostly during the warmer months such as rustic lawn chairs d. B and C
The first step in enforcing any antitrust policy is to
A) win the support of the public. B) win congressional approval. C) win the approval of the state senators from the state where the company is headquartered. D) define the market.