The opportunity cost of using one’s own savings in operating a business can be determined by using
a. wage rates.
b. interest rates.
c. exchange rates.
d. rental rates.
b. interest rates.
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Refer to Figure 12-5. The firm's manager suggests that the firm's goal should be to maximize average profit. In that case, what is the output level and what is the average profit that will achieve the manager's goal?
A) Q = 1,800 units, average profit = $20 B) Q = 1,350 units, average profit = $5 C) Q = 1,100 units, average profit = $6 D) Q = 1,350 units, average profit = $9
A major difference between social insurance and income assistance programs is that
a. social insurance programs are run by the states and income assistance programs are run by the federal government b. funding for social insurance programs comes exclusively from the federal government, whereas income assistance programs are funded both at the state and federal levels c. benefits from social insurance programs are related to a worker's contributions to the programs, whereas benefits from income assistance programs are not d. social insurance programs are available only to households with children e. income assistance programs are available only to households without children
The cost disease of the service sector in recent years is the result of
a. market failure. b. government intervention. c. collective bargaining by unions. d. uneven productivity growth.
Suppose you win a small lottery and you are given the following choice: You can (1) receive an immediate payment of $10,000 or (2) three annual payments, each in the amount of $3,600, with the first payment coming one year from now, the second two years from now, and the third three years from now. You would choose to take the three annual payments if the interest rate is
a. 2 percent, but not if the interest rate is 3 percent. b. 3 percent, but not if the interest rate is 4 percent. c. 4 percent, but not if the interest rate is 5 percent. d. 5 percent, but not if the interest rate is 6 percent.