An explicit cost is defined as
A) a nonmonetary accounting cost. B) a cost that involves spending money.
C) a nonmonetary opportunity cost. D) a cost that does not change as output changes.
B
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The spending multiplier is defined as:
A. the ratio of the change in equilibrium real GDP to the initial change in spending. B. the change in initial spending divided by the change in personal income. C. 1 / (marginal propensity to consume). D. 1 / (1 ? marginal propensity to save).
If the price is between $130 and $145, what will the firm do (a) in the short run? (b) in the long run?
Refer to the graph shown.
As a result of a tariff T imposed on speedboats, the price that foreign suppliers will receive probably will be:
A. P1. B. P2. C. P3. D. P4.
In a perfectly competitive market the long-run demand and supply curves are Q = 12 - P and Q = 5P respectively. Producer surplus in this market equals
A) 0. B) 5. C) 10. D) It cannot be determined without more information.