Which of the following are examples of explicit costs a firm might incur?
A) rent paid to the landlord
B) wages earned by delivery drivers
C) taxes owed to the IRS
D) All of the above are examples of explicit costs.
D
You might also like to view...
The aggregate demand curve in the figure above shifts rightward if
A) potential GDP increases. B) the money wage rate falls. C) taxes are raised. D) government expenditure increases. E) the Federal Reserve raises the interest rate.
Explain how an increase in the price level changes interest rates. How does this change in interest rates lead to changes in investment and net exports?
Cost-push inflation can be described as a rightward shift of the aggregate supply curve.
Answer the following statement true (T) or false (F)
When the price of pens went from $1 to $1.50, the quantity demanded of pencils changed from 50 to 75 a day. The cross-price elasticity of demand for pencils (using the initial value formula) is:
A. 1. B. 0.4. C. 0.2. D. -0.2.