Economic costs of production differ from accounting costs in that
A) economic costs include expenditures for hired resources while accounting costs do not.
B) economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.
C) accounting costs include expenditures for hired resources while economic costs do not.
D) accounting costs are always larger than economic cost.
Answer: B
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The deadweight loss from monopoly exists because:
A. resource owners hired by the monopolist gain at the expense of consumers. B. the marginal benefit of the monopolist's product to society exceeds the monopolist's marginal cost. C. the monopolist produces at an output level at which no one can be made better off without making someone worse off. D. there are no net gains to society at the output level produced by a monopolist.
Describe the effects on U.S. producers of steel, U.S. and consumers of steel, and the U.S. economy overall, after the United States imposed tariffs on steel imports in 2018. For the overall effect on the United States as a result of the steel tariffs, explain why it matters that the United States is a large importer of steel.
What will be an ideal response?
People who complete college provide a signal to employers about their skills and thus face better employment opportunities than equally skilled high school graduates. This is called:
A. the learning effect of a college education. B. the signaling effect of a college education. C. the discriminatory effect of a college education. D. None of these
The market in which households supply their savings to firms that demand funds in order to buy capital goods is the ________ market.
A. investment B. money C. capital D. savings