The full opportunity costs of production are calculated as the sum of both explicit and implicit costs
Indicate whether the statement is true or false
TRUE
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Refer to the information provided in Figure 34.1 below to answer the question(s) that follow.
Figure 34.1Refer to Figure 34.1. The ________ in this economy is 1.25.
A. MPS B. MPC C. MPM D. open economy multiplier
Which of the following is true?
A) Potential GDP fluctuates around nominal GDP. B) Nominal GDP fluctuates around real GDP. C) Real GDP never equals potential GDP. D) The Okun Gaps are much larger than the Lucas Wedge. E) Real GDP fluctuates around potential GDP.
What is the value of the MPC if $66 out of every $100 increase in disposable income is consumed?
A) $34 B) 0.34 C) 0.66 D) $166 E) More information is needed to determine the MPC.
Monopoly firms manage to earn positive profits, even in the long run because
a. they have no close substitutes b. there are high barriers of entry to the market c. they have a cost advantage difficult to duplicate d. all of the above