QUESTION 16

1. The opportunity cost of an input that is sold in a perfectly competitive market is:

a.less than the price of the input.

b.greater than the price of the input

c.not related to the price of the input.

d.equal to the price of the input.

QUESTION 21

1. You are conducting a cost-benefit analysis for a federal highway project. You are currently trying to determine the value of reduced driving time. The total labor cost for the project is $12.75 million. The hourly wage for construction workers on this project is $17.50 per hour. The average hourly wage in the community is $16.80. Using the wages approach, what value would you assign 100,000 hours of reduced driving time?

a.$1,680,000

b.$34,300,000

c.$1,750,000

d.$70,000

QUESTION 22

1. The hourly wage for construction workers completing a federal highway project is $17.50 per hour. These workers could have earned $12.75 in other jobs in the community. What is the transfer of rents per hour for each worker?

a.$30.25

b.$4.75

c.$17.50

d.$12.75

QUESTION 24

1. A painting by Monet displayed in a museum that charges an entry fee of $32 is:

a.excludable but not rival.

b.rival but not excludable.

c.neither rival nor excludable.

d.both rival and excludable.

QUESTION 28

1. You are conducting a cost-benefit analysis for a federal highway project. The hourly wage for construction workers on this project is $17.50 per hour. If the labor market is perfectly competitive, what is the market wage rate?

a.$4.75

b.$12.75

c.$30.25

d.$17.50