Davy's Doggie Daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. Farmer Fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. What is the cost of the warehouse and field to Davy?
A. It is an explicit cost of $2,000.
B. It is an implicit cost of $3,000.
C. It is an implicit cost of $0.
D. There is both an explicit and implicit cost totaling $5,000.
A. It is an explicit cost of $2,000.
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What will be an ideal response?
Temporary Assistance to Needy Families is a government program with the goal of:
A. social insurance. B. redistribution. C. economic growth. D. None of these is true.
A method of measuring the money supply by looking at money as a temporary store of value is the
A. transactions approach. B. liquidity approach. C. fiduciary monetary system. D. capital control.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point E necessarily represents
A. only motorcycles being produced. B. overallocation of resources. C. an impossible production point. D. technological advancement.