Which of the following is NOT a correct description of opportunity cost of capital?
A) It is the normal rate of return on investment.
B) It is normally included in accounting costs.
C) It is the income sacrificed by not investing in another firm.
D) It is an implicit cost.
Answer: B
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In the short run, the price level
a. will decrease if unit costs and markups both increase throughout the economy b. will remain stable if unit costs increase throughout the economy c. is unimportant in macroeconomics d. will increase if unit costs increase throughout the economy e. is determined by the Fed
When the Federal Reserve conducts open-market operations to increase the money supply, it
a. redeems Federal Reserve notes. b. buys government bonds from the public. c. raises the discount rate. d. decreases its lending to member banks.
Supposing a firm is a price taker, the demand for that firm's product is
A. a downward sloping line with the negative of the market price as its slope. B. flat line at the market price. C. parabolic. D. an upward sloping line with the market price as the slope.
Above is a firm's average product of labor and marginal product of labor curves. The price of labor is $60 per unit.When the firm uses 4 units of labor, what is AVERAGE variable cost?
A. $124 B. $10 C. $240 D. $24 E. none of the above