The implicit cost incurred by a firm to use its resources to produce its output is the firm's
A. fixed cost.
B. accounting cost.
C. explicit cost.
D. opportunity cost.
Answer: D
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The new classical model has as its central idea that
A) workers and firms have rational expectations. B) wage and price stickiness explain fluctuations in real GDP. C) shifts in aggregate demand have no impact on real GDP. D) the Federal Reserve should adopt a monetary growth rule.
Which of the following is true? a. The Rule of 70 says that the number of years necessary for a nation to double its output is approximately equal to the nation's growth rate divided by 70. b. Economic growth is usually measured by the annual percent change in the nominal output of goods and services per capita. c. An increase in labor input necessarily increases output per capita
d. Neither the initial development process nor the sustained growth of an economy is dependent on a large natural resource base.
Workers in industrial countries earn much higher wages than workers in developing countries because:
a. the industrial countries are labor rich and capital poor economies. b. the industrial countries lack a steady supply of unskilled laborers. c. the industrial countries produce labor intensive goods. d. the marginal productivity of labor is low in the industrial economies. e. the marginal productivity of labor is high in the industrial economies.
Suppose the nominal interest rate was 5 percent and the inflation rate was 3.5 percent
a. The dollar value of savings increased at 1.5 percent, and the value of savings measured in goods increased at 3.5 percent. b. The dollar value of savings increased at 3.5 percent, and the value of savings measured in goods increased at 1.5 percent. c. The dollar value of savings increased at 3.5 percent, and the value of savings measured in goods increased at 5 percent. d. The dollar value of savings increased at 5 percent, and the value of savings measured in goods increased at 1.5 percent.