Which of the following is an explicit cost in Jim's business venture?
A) the salary Jim could have earned at another job
B) the interest Jim does not earn because he invested his savings in his business
C) the wages Jim pays his workers
D) Jim's normal profit
E) Answers A, B, and D are correct.
C
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The Economic Freedom Index includes which of the following measures of economic freedom within a nation?
A) Levels of economic regulation B) Freedom of pricing C) Stability of monetary policy D) Taxation levels E) All of the above.
Michael Jordan has more athletic ability than most individuals. Thus, he is more productive at most tasks involving physical skill. Explain why then, it is more efficient for Michael Jordan to pay someone else to mow his lawn
What will be an ideal response?
If an economy at the equilibrium level of GDP experiences an increase in the amount of investment spending, then inventories will be
a. depleted, causing firms to cut production. b. accumulated, causing firms to cut production. c. depleted, causing firms to increase production. d. accumulated, causing firms to expand production.
A firm is experiencing a loss of $5,000 per year when operating. The firm has fixed costs of $8,000 per year. The firm should _________ in the short run and should _________ in the long run.
a. operate; shut down b. shut down; operate c. operate; operate d. shut down; shut down