Which of the following would be considered an implicit cost of operating a business?
A) shipping expenses
B) Social Security contributions for employees
C) the resale value of delivery vans the company owns and uses for its deliveries
D) interest payments on a loan
Answer: C
You might also like to view...
A free market fails when
A) firms that produce goods which create positive externalities go bankrupt. B) firms that produce goods which create negative externalities earn high profits. C) there is an external effect in either production, consumption, or both. D) there is government intervention.
Total surplus
A) is maximized under perfect competition. B) represents the gains from trade to market participants. C) treats consumer and producer surplus equally. D) All of the above.
Which of the following statements is TRUE?
A) APC + APS = 1 B) APC + APS < 1 C) APC + MPS = 1 D) APC + APS + MPC + MPS = 1
Economists who believe that the economy has a strong self-correcting mechanism argued that, after September 11, 2001, the economy needed
A. a quick and expansionary fiscal policy stimulus. B. a quick and expansionary monetary policy stimulus. C. only a short time to return to equilibrium full employment. D. President Bush to propose a large budget stimulus package.