What would be an example of an implicit cost of production?
a. the cost of a delivery truck in a business that rarely makes deliveries
b. the cost of employee training programs
c. the cost of raw materials for producing bread in a bakery
d. the cost of lost income an entrepreneur could have earned working for someone else
Ans: d. the cost of lost income an entrepreneur could have earned working for someone else
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If a person receives a consumer’s surplus from the purchase of a good, it must be that
A. the amount that the person paid minus the amount that this person values that good is greater than zero. B. the amount that the person values the good minus the amount that this person paid for that good is greater than zero. C. the value is negative because consumers have diminishing marginal utility. D. result is based solely on the supply of the good.
In the Keynesian cross diagram, a decline in autonomous consumer expenditure causes the aggregate demand function to shift ________, the equilibrium level of aggregate output to fall, and the IS curve to shift to the ________,
everything else held constant. A) up; left B) up; right C) down; left D) down; right
Carlos Silva, a Colombian singer, goes on tour to the United States for one month, following high American demand for his live shows. Assuming that all the show's expenses are paid by the U.S. promoters, other things equal, the U.S. tour will bring about:
a. a decreased supply of Colombian pesos in the foreign exchange market. b. an increased supply of American dollars in the foreign exchange market. c. an increased supply of Colombian pesos in the foreign exchange market. d. a decreased demand for Colombian pesos in the foreign exchange market. e. an increased demand for American dollars in the foreign exchange market.
According to the World Bank’s system, countries in the slow growth club have a GDP growth of
a. 5% or more per year. b. 2% or less per year. c. 2% or more per year. d. 5% or less per year.