Which of the following statements about explicit costs is true?
A. They appear on the firm's balance sheet.
B. They are the only costs that matter to business owners.
C. They usually exceed implicit costs.
D. They are difficult to measure.
Answer: A
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The figure above shows the loanable funds market. The equilibrium real interest rate is ________, and the equilibrium quantity of loanable funds is ________
A) 4 percent; $1.5 trillion B) 4 percent; $2.5 trillion C) 6 percent; $2.0 trillion D) 8 percent; $1.5 trillion E) 0 percent; $3.5 trillion
Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?
A) California B) Florida C) Montana D) He is indifferent between California and Florida. E) He is indifferent between Florida and Montana.
In the United States, the central bank is the:
A. Federal Reserve. B. Congressional Budgeting Office. C. Treasury. D. National Bank of the United States.
In the short-run an increase in the costs of production makes
a. output and prices rise. b. output rise and prices fall. c. output fall and prices rise. d. output and prices fall.