Which of the following statements about explicit costs is true?
A. They usually exceed implicit costs.
B. They are the only costs that matter to business owners.
C. They appear on the firm's balance sheet.
D. They are difficult to measure.
Answer: C
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Joe wants to achieve the highest position possible with the XYZ Co During the interview, he tells them he is capable of performing many difficult tasks. The company feels there is an 10% chance he is lying
Given the payoff matrix in the above figure, what job level will the company offer to Joe? Why?
From an economic perspective, the socially best amount of pollution control is that amount in which:
a. there is zero pollution. b. the private plus external marginal costs are equal to the private plus external marginal benefits. c. the private plus external marginal costs are less than the private plus external marginal benefits. d. the private marginal costs are equal to the private marginal benefits. e. the external costs equal the external benefits.
Higher rates of interest increase the opportunity cost of holding money balances
a. True b. False Indicate whether the statement is true or false