Implicit costs are
A) costs that are measured in dollars.
B) costs that do not involve an exchange of money.
C) costs that typically involve the exchange of money.
D) the same as explicit costs.
B
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Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and GDP Price Index rises. b. The real risk-free interest rate falls, and GDP Price Index falls. c. The real risk-free interest rate rises, and GDP Price Index falls. d. The real risk-free interest rate and GDP Price Index remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
According to the efficient market hypothesis
a. changes in the prices of stocks are predictable. Evidence shows that managed funds typically do better than indexed funds. b. changes in the prices of stocks are predictable. Evidence shows that indexed funds typically do better than managed funds. c. changes in the prices of stocks are not predictable. Evidence shows that managed funds typically do better than indexed funds. d. changes in the prices of stocks are not predictable. Evidence shows that indexed funds typically do better than managed funds.
What is meant by a "discriminating monopolist"?
a. The firm discriminates on the basis of hiring workers. b. The firm violates all antitrust laws. c. The firm evades taxes. d. The firm sells its product at different prices in different markets.
Cash is an example of a liquid financial asset.
Answer the following statement true (T) or false (F)