It Often Appears as If There Are "Too Few" Workers

question 26

Multiple Choice

It often appears as if there are "too few" workers at the Department of Motor Vehicles (DMV) to service all their customers at a given point in time. Based on one of theories discussed in the text,this is probably because

• A) the equilibrium "price" to be served by the DMV is lower than the "price" charged customers.
• B) the equilibrium "price" to be served by the DMV is higher than the "price" charged customers.
• C) the equilibrium "price" to be served by the DMV minus the "price" charged to customers is zero.
• D) b and c
• E) none of the above

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Definitions:

Opportunity Cost

The detriment of neglecting the next optimal alternative during the process of making a decision.

Opportunity Cost

The benefit that is missed or given up when choosing one alternative over another.

Hour

A unit of time equal to 60 minutes.

Opportunity Cost

Skipping over the possibility of gain from multiple options by deciding on a single one.