Implicit costs are:
A. the opportunity costs of using resources owned by the entrepreneur in his/her own business.
B. payments the business owner must make on borrowed funds.
C. costs which vary as the level of output varies.
D. those payments the business owner makes in cash.
Answer: A
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In what year did the mutual fund industry in the United States begin?
A) 1812 B) 1924 C) 1974 D) 1990
Inflation targeting involves public disclosure of each of the following, except ________
A) policy makers' plans and objectives B) explanation of discrepancies between target inflation and actual inflation C) the federal government debt ceiling D) projections of macroeconomic conditions
Projects with a positive NPV create
a. economic profits since they earn a return higher than the company's cost of capital b. economic profits since they earn a return lower than the company's cost of capital c. accounting profits only since they earn a return higher than the company's cost of capital d. accounting profits only since they earn a return lower than the company's cost of capital
How people respond to fiscal policy:
A. is fairly mechanical and appears to conform closely to the predictions of macroeconomic models. B. depends on whether the fiscal policy is financed from borrowing or from budget surpluses. C. depends on their evaluation of the state of the economy and their expectations about the future. D. generally reveals consistent irrationality and poorly-formed expectations about the future.