Bubba is a shrimp fisherman who could earn $5,000 as a fishing tour guide. Instead, he is a full-time shrimp fisherman. In calculating the economic profit of his shrimp business, the $5,000 that Bubba gave up is counted as part of the shrimp business's
a. total revenue.
b. explicit costs.
c. implicit costs.
d. marginal costs.
c
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The tyranny of collateral ________
A) suggests that government tax rates are too high in the United States B) gives rise to the twin problems of moral hazard and adverse selection C) implies that when a poor person has a good idea they find it difficult to acquire financing D) attributes moral hazard to excessive government regulation
If the number of close substitutes of a good increases, _____
a. the elasticity of demand for the good decreases b. the elasticity of demand for the good increases c. the elasticity of demand for the good becomes zero d. the elasticity of demand for the good remains unaffected
Macroeconomists study
a. the decisions of individual households and firms. b. the interaction between households and firms. c. economy-wide phenomena. d. regulations imposed on firms and unions.
"Profits are a reward for risk-bearing" would be a view held by
A. Joseph Schumpeter. B. Frank Knight. C. Henry George. D. Karl Marx.