Shoe leather costs are
A. the costs associated with the confusion of prices as signals.
B. the costs of changing prices, such as printing and mailing catalogues.
C. the costs of the redistribution of wealth between lenders and borrowers.
D. the costs in time and effort incurred by people and firms who are trying to minimize their holdings of cash because of inflation.
Answer: D
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Many developing countries make the government budget one of the primary tools of long-run industrial development, with the government owning and operating industries such as steel mills, airlines, and phone companies
Indicate whether the statement is true or false
If workers sit idly by for a portion of their workday, but are still employed, firms may be engaged in ________
A) intertemporal substitution B) voluntary unemployment C) labor hoarding D) real business
Long-run cost functions are estimated using
A) time-series regression analysis. B) cross-sectional regression analysis. C) cost accounting data. D) None of the above
If the supply curve for land was a vertical line, then any payment made for land would be considered
A) as economic rent. B) as economic lease. C) as economic interest. D) as an opportunity lease payment.