An explicit cost is:
A. omitted when accounting profits are calculated.
B. an implicit cost to the resource owner who receives that payment.
C. always in excess of a resource's opportunity cost.
D. a money payment made for resources not owned by the firm itself.
Answer: D
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In the United States, real GDP is currently calculated using
A) a variable-weighting scheme. B) a chain-weighting scheme. C) a fixed-weighting scheme. D) an autoregressive scheme.
The loanable funds market brings together savers and borrowers to determine the
a. marginal rate of return on investment b. rate of time preference c. market rate of interest d. marginal resource cost of investment e. marginal revenue product of investment
Assume the economy moves from a situation with full employment to one in which the unemployment rate is higher. This can be portrayed as: a. an inward shift of the production possibilities curve
b. an outward shift of the production possibilities curve. c. a movement from a point inside the production possibilities curve to a point closer to the production possibilities curve. d. a movement from a point on the production possibilities curve to a point inside the production possibilities curve.
With specialization
A) opportunity costs tend to be constant. B) there are greater gains in material well being. C) there is more emphasis on self-reliance. D) society is more productive while individuals are less productive.