What is the distinction between private cost and social cost?
What will be an ideal response?
A private cost of production is the cost of producing a good or service that is borne only by the producer. A social cost of production includes the private costs of production as well as the external costs of production borne by people other than the producer.
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A discouraged worker is defined as
A) someone who is working at a job he dislikes. B) someone who is overqualified for the job she currently holds. C) someone who would like to work full time but is only working part time. D) someone who has given up actively looking for a job after an extended period of unemployment.
Suppose that a 20% increase in the price of product X generates a 15% increase in the quantity of X supplied. The price elasticity of supply for good X is
A. less than 1 and therefore supply is inelastic. B. positive and therefore X is a normal good. C. negative and therefore X is an inferior good. D. more than 1 and therefore supply is elastic.