Any business wanting to attract financial capital must expect to
A) earn a positive economic profit.
B) keep implicit costs as close to zero as possible.
C) pay a normal rate of return.
D) pay a below normal rate of return in order to make a positive rate of return itself.
C
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Why is a consumer's satisfaction maximized when the marginal benefit from the last dollar spent on one good is equal to the marginal benefit from the last dollar spent on another good?
What will be an ideal response?
Which of the following institutions is not subject to Federal Reserve's reserve requirements?
A) A state-chartered commercial bank B) A savings and loan association C) A money market mutual fund D) A credit union
During the recent past, production and income have grown faster than population in highly developed economies because
A. of the availability of expensive and ineffective birth control devices. B. of rapid technological advancements. C. accumulation of both physical and human capital has slowed down. D. famine, war, and pestilence have greatly reduced the population.
One important reason why the U.S. government is not likely to go bankrupt even with a large public debt is that it has:
A. the ability to refinance debt as it comes due by selling new bonds. B. the ability to decrease interest rates and increase investment spending. C. s strong military to protect it from creditors. D. the capacity to pay off its outstanding debt with gold.