An example of an implicit cost is
A) payment of a salary to a CEO of a company.
B) a business using a building owned by the business owner.
C) a payment to a resource owner.
D) the payment of interest on a bond.
Answer: B
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Referring to Figure 19.2, an appreciation of the dollar is represented by a movement from point
A) b to c. B) c to d. C) a to c. D) a to d.
When the text refers to rational self-interest, it means
A) your looking out for what is best for you as an individual. B) your focus on your own contributions to society. C) behavior that makes society better off. D) behavior that helps your employer earn higher profits.
In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then the output gap equals:
A. 1 percent. B. 2 percent. C. ?1 percent. D. ?2 percent.
Answer the following statements true (T) or false (F)
1) Between 1953 and 2011, rising labor productivity contributed more to U.S. economic growth than did increases in inputs. 2) Real GDP = worker-hours × labor productivity. 3) Labor productivity = worker-hours/real GDP. 4) Improvements in education and training explain about 80 percent of the historical growth of U.S. labor productivity.