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.
C
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Rachel, a large pineapple producer in Hawaii, lobbies Congress to limit imports of pineapples in order to be able to sell her pineapples at a higher price and greatly increase her income. This possible source of income inequality is due to
A) globalization. B) technology changes. C) productivity differences. D) rent seeking.
Robert Fogel (1964) demonstrates that
(a) the social saving of the railroad was large; much of the country (over 25%) could not have been settled and cultivated without the railroad. (b) the canal and river systems of transportation could very nearly have produced the same results as the railroad in terms of land cultivated. (c) the railroad was responsible for a great "take-off" in terms of economic growth in the 19th century. (d) the railroad gave a huge boost to the iron industry because for a time it consumed well over 50% of all iron produced.