Implicit costs
A. Are the value of resources used for which no direct payment is made.
B. Are the total opportunity costs of resources and inputs used to produce a good.
C. Represent actual monetary payments made for resources used to produce a good such as oil.
D. Include only payments to workers and lenders.
Answer: A
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Melissa has an income of $240 a month to spend on tennis lessons and concert tickets. The price of a tennis lesson is $20, and the price of a concert ticket is $40
If the quantity of tennis lessons is QT, and the quantity of concert tickets is QC, Melissa's budget line equation is A) QC = 6 - 0.5QT. B) QC = 12 - 2QT. C) QC = 240 - 40QT. D) QC = 20 + 40QT.
Moral hazard:
A. is about the unobserved actions of people. B. is about the unobserved characteristics of people. C. occurs before the parties have entered into an agreement. D. None of these statements is true.
Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. Suppose that Dawn initially proposed $5 million while Terry proposed $9 million. Given the distribution of voters' preferences, Dawn can increase her chance of being elected by proposing:
A. a greater budget toward the median budget. B. a greater budget than $9 million. C. a smaller budget than $5 million. D. None of these
Producer surplus is defined as
A. the value that the consumer places on a good over the amount they pay for it. B. when quantity demanded is greater than quantity supplied. C. the money that the producer gets from a good over the amount they are willing to sell it for. D. when quantity supplied is greater than quantity demanded.