An accountant shows an invoice for a resource to the manager of the firm. They are discussing
A) explicit costs.
B) implicit costs.
C) economic profits.
D) either explicit costs or implicit costs, but we can't tell without more information.
A
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Use the following graph to answer the next question.
Assume that the economy is in a rapid expansion with a price level of P2 and output level Q2. The government then adopts an appropriate discretionary fiscal policy. What will be the most likely new equilibrium price level and output?
A. P2 and Q4 B. P1 and Q3 C. P1 and Q1 D. P2 and Q2
The additional cost associated with the hiring of one more unit of labor is known as the
A) marginal physical product of labor. B) marginal revenue product of labor. C) marginal factor cost of labor. D) marginal utility of labor.
While you were an intern you bought 5 packages of hot dogs a month. After acquiring a full-time job with a considerably higher salary, you stopped purchasing hot dogs. For you, hot dogs are a
a. Complementary good b. Normal good c. Inferior good d. Substitute good
Which of the following does not hinder economic development?
a. Lack of education b. Poor agricultural productivity c. Low investment in human capital d. Lack of technology e. Good nutrition