Implicit costs are ________ and explicit costs are ________
A) nonmonetary costs; also nonmonetary costs
B) nonmonetary costs; costs that involve spending money
C) costs that involve spending money; nonmonetary costs
D) costs that involve spending money; also costs that involve spending money
Answer: B
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Refer to Figure 4.7. You will receive a payoff of 0 points if you ask for points and so do ________ of your classmates
A) 0 B) 6 C) 12 D) none of the above
Requiring commercial banks to hold reserves equal to some fraction of their deposit liabilities
A) acts as a constraint on bank lending. B) is an alternative for banks that choose not to use the gold standard. C) is without significance since banks are not required to meet their liabilities on demand by depositors. D) prevents runs on banks by depositors who fear that the banks may not have assets equal to their liabilities. E) really has no effect on the monetary system today.
Which statement is true?
A. The marginal cost curve is used to determine if a firm is operating at peak efficiency. B. A firm will always try to maximize its total revenue. C. A firm's long-run supply curve is identical to its entire marginal cost curve. D. A firm is operating most efficiently when it is at its break-even point.
What situation gives rise to a surplus?
A) The market clearing price of the good is too high. B) The current price of the good is below its market clearing price. C) The current price of the good is above its market clearing price. D) Supply of the good decreases, but the market price is not permitted to change.