Which of the following is an implicit cost? i. wages paid to workers ii. the normal profit iii. the electric bill
A) i only
B) ii only
C) i and ii
D) ii and iii
E) Neither i, ii, nor iii
B) ii only
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A temporary price differential in resource markets is
a. eliminated by resource movements b. caused by a failure of firms to maximize profits c. eliminated by resources moving from highly-valued uses to lower-valued uses d. caused by Congress increasing the federal minimum wage e. a result of firms using the MRP = MRC rule in hiring resources
Automatic stabilizers are ______.
a. too weak to stop a significant recession b. effective only during a severe recession c. subject to significant implementation lags d. less effective than fiscal policy in a normal economy
Lower input prices in large firms might lead to:
A. upward-sloping marginal cost curves. B. upward-sloping short-run average cost curves. C. upward-sloping long-run average cost curves. D. downward-sloping long-run average cost curves.
One cost of an unanticipated inflation is that it
A. decreases menu costs. B. increases the purchasing power of money. C. transfers wealth from borrowers to lenders. D. transfers wealth from lenders to borrowers.