Which of the following is an example of an implicit cost?
A) rent on a building
B) the cost of fertilizer for a farmer
C) the economic depreciation of capital equipment the business owns
D) the cost of fuel and materials.
E) wages paid to workers
C
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Which of the following is not true about the housing market?
a. The price of housing will increase or decrease in order to achieve an equilibrium b. An increase in the demand for housing will cause an increase in the quantity supplied of housing c. When the demand for housing increases, the price of housing will increase but the quantity supplied will not increase in the short run d. The housing market is a unique market because most people had to borrow money to buy their homes e. The only way to increase the supply of housing is to build more houses
Economists assume simply that tastes are given and are relatively stable
Indicate whether the statement is true or false
Which of the following statements is true regarding expansionary fiscal policy?
A) It leads to an increase in the supply of bonds by the Treasury. B) It leads to a fall in interest rates. C) It leads to an increase in net exports. D) It tends to reduce to size of government.
If the nominal wage rises by 6 percent, and the price level falls by 2 percent, the real wage will:
A. be unaffected. B. rise by 4 percent. C. fall by 4 percent. D. rise by 8 percent.