Implicit costs
A. Include the value of all resources used to produce a good.
B. Are the sum of actual monetary payments made for resources used to produce a good.
C. Include only payments to labor.
D. Are the value of resources used, for which no monetary payment is made.
Answer: D
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Marginal cost is
A) all the costs of the fixed inputs. B) all the costs of production of goods. C) all the costs that vary with output. D) the change in the total cost resulting from a one-unit change in output.
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The coupon rate for bond B is
A. 0.04 percent. B. 4.3 percent. C. 4.1 percent. D. 11 percent.
A natural monopoly results when a firm has
a. a license b. a patent c. official approval to produce a product d. decreasing average costs over the range of market demand e. exclusive use of a natural resource
Which of the following would not be included in the calculation of GDP?
a. Vegetables grown and consumed by a nonfarm family b. The purchase of a new Porsche c. The sale of meat at the local grocery store d. The government purchase of an F-14 fighter plane e. The payment made to an accountant for the preparation of tax forms