The opportunity costs of the firm using its own funds are measured by the:
A) market interest rate.
B) inflation rate.
C) price level.
D) menu costs.
A
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Compared to the GDP deflator, the consumer price index measures:
A) the price of all the goods and services produced in the economy. B) the price of a fixed market basket of goods and services. C) the price of exported goods and services. D) the price of wholesale goods and services.
Bank capital will decline following an increase in interest rates if the value of its
A) fixed-rate assets is greater than the value of its fixed-rate liabilities. B) fixed-rate assets is less than the value of its fixed-rate liabilities. C) fixed-rate assets is greater than the value of its variable-rate assets. D) fixed-rate liabilities is greater than the value of its variable-rate liabilities.
Normal profit is defined as a(n):
a. foregone percent rate of return. b. opportunity profit. c. implicit profit. d. minimum necessary to keep a firm in operation.
The demand for labor is called a derived demand because it is derived from the
A. productivity of labor. B. amount of labor available at different wages. C. demand for firms' outputs. D. supply of the firm's products.