An implicit cost is defined as:
A) the opportunity cost of using a resource that is not explicitly paid out by the firm.
B) the difference between an input's explicit cost and its actual cost.
C) the amount by which economic profit exceeds accounting profit.
D) the amount by which the money spent on an input to production exceeds its opportunity cost.
A
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Consider a small open economy in equilibrium with a current account deficit
(a) Draw a diagram showing this situation. (b) What happens to national saving, investment, and the current account balance in equilibrium if government expenditures rise temporarily? Show this result in your diagram.
The four-firm concentration ratio is calculated by adding the _____________ of the four largest firms in the industry.
a. profits b. total earnings c. market shares d. costs of wages
Is there a tradeoff between fiscal policy that is timely and fiscal policy that is targeted?
A. No, the video gives several examples of timely fiscal policy that was targeted. B. Yes, because it takes a very long time to decide what the targets should be. C. Yes, because the industries that need help also move the slowest. D. Yes, because it's hard to create targeted fiscal policy quickly.
A government airline safety regulation reduces the probability of a fatal airline crash by 0.005. If the costs associated with each airplane crash are equal to $600 million, the regulation has an expected marginal benefit of at least:
A. $3,000,000. B. $600,000. C. $1,000,000. D. $2,000,000.