If you are a sole proprietor of a firm and you do not pay yourself a regular wage, then the value of the wage you could have earned elsewhere is
A. an explicit cost.
B. an accounting cost.
C. an implicit cost.
D. not a cost.
C. an implicit cost.
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When opportunity costs rise as more of a good is consumed, the production possibilities frontier will be concave (bowed out) with respect to the origin
a. True b. False
If the total variable cost curve is a straight line then the
A. total cost curve will also be a straight line. B. total cost curve may or may not be a straight line. C. marginal cost function is upward sloping. D. marginal cost function is downward sloping.
The net value of the flow of goods, services, income, and gifts is the current account balance.
Answer the following statement true (T) or false (F)
At a perfectly competitive equilibrium with production and trade, the slope of the production possibility curve will be
A) equal to the slope of the price line faced by the consumers. B) steeper than the slope of the price line faced by consumers. C) flatter than the slope of the price line faced by consumers. D) either steeper or flatter than the price line faced by the consumers, depending upon the relative preferences of the consumers.