Suppose you are planning to open a lemonade stand. List separately all the explicit and implicit costs that might be involved
The obvious explicit costs would include the price of the stand, the lemons, sugar, water, sign, etc. It may also require the purchase of a license and the paying of taxes, depending on the government regulations of the particular locale. Implicit costs would be the opportunity cost of the funds used to pay the explicit costs plus the opportunity costs of your time to operate the lemonade stand.
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Catherine is risk-averse. When faced with a choice between a gamble and a certain level of wealth she will
A) always prefer the gamble. B) always prefer the certain level of wealth. C) prefer the gamble if the expected utility from it is higher than the utility from the certain level of wealth. D) prefer the certain level of wealth if the expected utility from the gamble is higher than the utility of the certain level of wealth.
In the Keynesian model, the I = S equation, where I is intended investment and S is actual saving, describes the economy in macroequilibrium
Indicate whether the statement is true or false
Assuming that bus travel is an inferior good, an increase in consumer income, other things being equal, will cause
a. an upward movement along the demand curve for bus travel. b. a downward movement along the demand curve for bus travel. c. a rightward shift in the demand curve for bus travel. d. a leftward shift in the demand curve for bus travel.
If two workers can produce 22 units of output, and the addition of a third worker increases output to 30 units, the marginal product of the third worker is
a. 8 units. b. 10 units. c. 22 units. d. 30 units.