Which of the following statements is false?
A) An implicit cost is a nonmonetary opportunity cost.
B) Economic costs include both accounting costs and implicit costs.
C) An explicit cost is a cost that involves spending money.
D) Economists consider all costs to be implicit costs.
Answer: D
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Which of the following practices is not restricted by the antitrust law in the United States?
a. Contracts and conspiracies in restraint of trade b. Attempts to monopolize a market c. Mergers that substantially reduces competition d. Unfair or deceptive acts of competition e. All forms of quality discrimination
The law of comparative advantage indicates that
a. specialization and exchange will permit trading partners to maximize their joint output. b. a nation can gain from trade only if it is not at an absolute disadvantage in producing all goods. c. a nation can gain from trade only when its trading partners are not low-wage countries. d. countries should export products for which they are high-opportunity cost producers.
The traditional view of the production process is that capital is subject to
a. constant returns. b. increasing returns. c. diminishing returns. d. diminishing returns for low levels of capital, and increasing returns for high levels of capital.
Refer to the diagram in which T is tax revenues and G is government expenditures. All figures are in billions. This diagram portrays the idea of:
A. progressive taxation.
B. built-in stability.
C. the multiplier.
D. discretionary fiscal policy.