Implicit cost refers to:
A. salary paid to the factors of production.
B. any increase in the value of the assets owned by the firm.
C. the amount a firm receives for selling its product or service.
D. the opportunity cost of factors of production provided by the owners of the firm.
Answer: D
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The figure illustrates the market for bagels. If the number of bagels is cut from 20 to 10 an hour, the deadweight loss is ________
A) $0.50 a bagel B) -$5.00 an hour C) $0 an hour D) $5.00 an hour
For a collective consumption good, market demand is found by ______
a. horizontally summing individual demand curves b. vertically summing individual demand curves c. estimating a market demand function based on survey data d. estimating a market demand function based on data from similar goods having market pricing
Economic profits and losses are true market signals because they
A) convey information in an asymmetrical fashion. B) convey information about rewards people should anticipate experiencing by shifting resources from one activity to another. C) convey information to public officials about where to encourage people to invest and what skills people should develop. D) cause people to move into careers in both undesirable and desirable industries with equal ease.
In Okunland, a country whose economy operates according to Okun's law, real GDP equals $7,520 billion, potential GDP equals $8,000 billion, and the actual unemployment rate is 8 percent. What is the natural rate of unemployment in Okunland?
A. 2 percent B. 11 percent C. 6 percent D. 5 percent