Which of the following would NOT be considered a fixed cost of production?
A) wages paid to labor
B) the opportunity cost of capital
C) interest payments on a loan
D) insurance payments on plant and equipment
Answer: A
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A nation's average annual real GDP growth rate is 3%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 40 years. B. 175 years. C. 17.5 years. D. 24 years.
In the graph for the consumption function, the 45-degree line
A) contains only a consumption component.
B) represents both planned consumption and planned investment.
C) shows various combinations where planned consumption equals real disposable income.
D) reflects a decreasing APC as real disposable income rises.
Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
a. $1,550 billion. b. $130 billion. c. $1,873 billion. d. $1,227 billion. e. $967 billion.
In economics, the true cost of making a choice is the value of what must be given up.
Answer the following statement true (T) or false (F)