Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, the explicit costs of his business are $10,000, and the opportunity costs of his business are $18,000 per year. What are the implicit costs of his business?
A) $8,000
B) $18,000
C) $24,000
D) $32,000
Answer: B
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Which of the following would not be considered an automatic stabilizer?
A. Defense spending B. Income tax C. Welfare payments D. Unemployment compensation
The income effect implies that there is a positive relationship between
A) income and the unemployment rate. B) the unemployment rate and the inflation rate. C) aggregate supply and aggregate demand. D) monetary growth and interest rates.
According to the efficient market hypothesis
a. changes in the prices of stocks are predictable. Evidence shows that managed funds typically do better than indexed funds. b. changes in the prices of stocks are predictable. Evidence shows that indexed funds typically do better than managed funds. c. changes in the prices of stocks are not predictable. Evidence shows that managed funds typically do better than indexed funds. d. changes in the prices of stocks are not predictable. Evidence shows that indexed funds typically do better than managed funds.
At an output of 17, ATC is $20 and MC is $17. At an output of 18, ATC is $20.20 and MC is $21. We may conclude that the output at which the firm produces at peak efficiency is
A. less than 17. B. 17. C. between 17 and 18. D. 18.