What are explicit cost and implicit cost?
What will be an ideal response?
Explicit cost is the actual monetary payments for inputs while implicit cost is the opportunity cost of the inputs that do not require a monetary payment.
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Marginal utility theory predicts that a rise in the price of a banana results in
A) the demand curve for bananas shifting rightward. B) the demand curve for bananas shifting leftward. C) a movement upward along the demand curve for bananas. D) a movement downward along the demand curve for bananas.
The portion of the money supply controlled by a central bank is
a. currency. b. deposits. c. reserves. d. the monetary base. e. the money multiplier.
In the long run, supply shocks
a. are of no concern b. are automatically offset so that the full-employment level of output is restored c. cause the long-run AS curve to shift d. have no effect on the wage rate e. are automatically offset so that output and the price level return to their original values
Which of the following would be included in the GDP of the United States?
A. Boeing builds a plane in Seattle that is sold to Air Canada. B. Planet Hollywood serves customers in a restaurant in Hong Kong. C. Nestle produces a candy bar in Switzerland that is sold in San Francisco. D. General Motors produces a car in Germany that is sold in Michigan.