Hutch Technology makes computer monitors, which sell for $100 each. What is the opportunity cost of ten monitors?
a. $1,000.
b. the other goods that could be produced with the resources that produce the ten monitors
c. the profits that Hutch earns when it sells the ten monitors
d. the profits that Hutch loses if it does not produce the monitors
e. All of the above are correct.
b
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Total wealth is a ____ concept; total income is a ____ concept.
a. stock; flow. b. stock; stock. c. flow; stock. d. flow; flow.
Arbitrage operations can be executed
A) in foreign exchange markets. B) in goods markets. C) Both A and B. D) None of the above.
Accounting costs are often unsatisfactory from the economist's point of view because
a. they fail to allow for depreciation, the wearing out of capital assets during a period. b. they often exclude the opportunity costs of the firm's equity capital. c. accountants attempt to minimize costs in order to make profits look good. d. accounting procedures are designed to overstate costs in order to minimize business tax liability.
Data on the unemployment rate in the U.S. since 1960 show that the unemployment rate is
a. always zero. b. sometimes zero. c. rarely zero. d. never zero.