Ron Woerner Works in a Factory

question 33

Multiple Choice

Ron Woerner works in a factory. He is paid $7.50 for each item he assembles with a guaranteed minimum of $150 a day. In the last 5 days, he has assembled the following number of items: 19, 21, 23, 17, and 20. What are his gross earnings for the week?

• A) $650
• B) $680
• C) $750
• D) $780

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Definitions:

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded at the existing price.

Binding Rent-Control

A type of rent regulation where the set price ceilings are below the market equilibrium rent, leading to shortages and reduced quality of rental housing.

Transaction Costs

Expenses incurred in the process of making an economic exchange, including search, information, bargaining, decision, policing, and enforcement costs.

Allocation

The process of distributing resources or goods among various uses or people in a systematic way.