An example of an implicit cost is
A) payment of a salary to a CEO of a company.
B) a business using a building owned by the business owner.
C) a payment to a resource owner.
D) the payment of interest on a bond.
B
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If the price level increases and workers' money wage rates remain constant,which of the following will occur?
I. The quantity of labor supplied will decrease. II. The real wage rate will decrease. III. The labor supply curve will shift rightward. A) I only B) I and II C) II and III D) I, II and III
Which of the following is a reason why the Japanese yen is considered money?
a. It is backed by gold. b. Its value over the years has varied significantly. c. Goods in Japan are priced in terms of the yen, the most liquid asset of the economy. d. It is backed by silver. e. It is an asset that lacks liquidity.
If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,
a. the short-run Phillips curve would shift up. b. the short-run Phillips curve would shift down. c. the long-run Phillips curve would shift right. d. the long-run Phillips curve would shift left.
The firm’s demand curve is horizontal no matter what its output is because it ______.
a. can influence the market price determined mostly by the low market output
b. must accept the market price determined by the intersection of the market supply and demand curve
c. can influence the market price determined by the intersection of the market supply and demand curve
d. must accept the market price determined mostly by the high market output