Which of the following items is most likely to be an implicit cost of production?
a. the "competitive rate" salary the owner of the business pays herself for services provided
b. property taxes on a building owned by the firm
c. rental payments for a building utilized by the company and rented from another party
d. the interest income foregone on the equity capital invested by owners
D
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Suppose the dollar depreciates from 89 Japanese yen to 79 Japanese yen. One would expect
A. U.S. imports to increase B. U.S. exports to increase. C. Japanese exports to increase. D. Japanese net exports to increase.
Is there a positive or negative relationship between real wages and output in the classical model? Explain
What will be an ideal response?
For a monopoly earning positive economic profits at the profit-maximizing output level, all of the following are true EXCEPT
A) P > ATC. B) P > MR. C) P > MC. D) P = MR.
Answer the next question based on the following list of factors that are related to the aggregate demand curve. 1) Real-Balances Effect2) Household Expectations3) Interest-Rate Effect4) Personal Income Tax Rates5) Profit Expectations6) National Income Abroad7) Government Spending8) Foreign Purchases Effect9) Exchange Rates10) Degree of Excess CapacityInvestment spending would most likely be influenced by changes in
A. 5 and 10 B. 1 and 3 C. 4 and 5 D. 8 and 9