An explicit cost is:
a. an opportunity cost for which payment is not required.
b. an out-of-pocket expense
c. always larger than an associated implicit cost.
d. both (a) and (b)
b
You might also like to view...
In the economic way of thinking, we assume that central bankers act
A) selfishly. B) to promote projects which interest them. C) in the national interest. D) in the global interest.
One example of physical capital is the amount of savings that you have
Indicate whether the statement is true or false
The assumption of constant velocity is a critical component of the
a. monetarist model. b. classical model. c. real business cycle model. d. new classical model. e. all of the above.
Given $1,000.00, the following spot exchange rates, and assuming zero transaction costs, illustrate and explain how you could use triangular arbitrage to profit on the disequilibrium in the foreign exchange market. The price of the euro (€) in terms of U.S. dollars is $1.20. The price of the British pound (£) in U.S. dollars is $1.30, and the cross rate between the € and the £ is 0.89 pounds per euro.
What will be an ideal response?