Which of the following would be classified as a variable cost for the local Texaco station?
A) interest payments to a local bank for a 5-year loan
B) the total wages paid to the workers who are all paid $16.00 per hour, no matter how many hours they work each week
C) the premiums paid for liability insurance, which are constant throughout the life of the contract
D) the opportunity cost of money used to finance the installation of some new pumps
B
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Suppose that land is specific to agriculture, capital is specific to manufacturing, and labor is mobile between sectors. According to the specificfactors model, if this country begins importing manufactured goods, which factor will experience the highest unemployment?
a. Labor b. Capital c. Land d. No factors will experience unemployment.
Pollution is a form of market failure called a negative externality
a. True b. False