Out-of-pocket expenses such as wages and raw materials are
A. implicit costs.
B. explicit costs.
C. direct costs.
D. an owner-provided capital cost.
Answer: B
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Refer to Figure 6.1. Suppose the economy is originally in steady state at k*1. If the saving rate increases from s1 to s2,
A) depreciation becomes greater than investment. B) investment becomes greater than depreciation. C) investment becomes greater than saving. D) saving becomes greater than investment.
Productive efficiency implies that
A) it is impossible to obtain gains in one area without losses in another. B) it is possible to obtain gains in one area without losses in another. C) there are too many resources available. D) there are too few resources available.
Figure 7.3
The price of Video Game rentals is $2 For MUA/$ and $4 for MUB/$.The price of Energy Drinks is $2.Budget = $28.Refer to Figure 7.3. If the price of video game rentals drops from $4 to $2, the marginal utility per dollar at the utility maximizing combination is ________ utils for video game rentals and ________ utils for energy drinks.
A. 18; 18 B. 18; 16 C. 16; 16 D. 8; 16
The gross domestic product is not a good measure of the standard of living in a nation because it:
A. Includes the cost of health insurance B. Excludes payments for pollution control equipment C. Does not account for the size of the population D. Does not account for the cost of police protection