If Adam's Rib Joint took in 35,000 in revenue last week and had out-of-pocket expenses of 31,500:
a. it is clear that Adam made an economic profit of 3,500.
b. Adam really didn't make any economic profit since he needs to put the difference between revenue and out-of-pocket expenses back into the firm.
c. Adam clearly did not earn an economic profit.
d. it is not clear whether Adam earned any economic profit last week because it depends on the magnitude of the implicit costs.
QUESTION 2An individual's decision to supply her labor or to spend her time in leisure activity is known as the labor-leisure tradeoff.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 3Demand is price-elastic at the top portion of a straight-line downward-sloping demand curve.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4Which of the following is not an explicit cost for the owner of a local pizza parlor?
a. flour
b. cleaning products
c. other uses for the land that the parlor sits on
d. pizza ovens
QUESTION 5The principal argument against comparable worth is that:
a. men and women differ largely in terms of their productivities.
b. market does not function correctly and leads to inefficient allocation of resources.
c. market allocates scarce resources to their most valued use in the most efficient manner.
d. demand and supply do not allocate workers to where they are needed the most.
e. legislation by the government are often appropriate as it processes all the available information correctly.
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