Which of the following is an implicit cost?
a. salaries paid to owners who work for their own firm
b. interest on money borrowed to finance equipment purchases
c. cash payments for raw materials
d. wages paid to hourly employees
e. foregone interest on money taken from bank accounts to buy equipment
E
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An increase in the marginal cost of an activity necessarily means that people will no longer engage in any of that activity
a. True b. False Indicate whether the statement is true or false
If an individual’s income increases by $100, then their spending will increase by less than $100.
Answer the following statement true (T) or false (F)
Labor economics concerns
A. the study of how households decide where to live. B. the study of income inequality. C. the study of education decisions. D. how labor markets work. E. All of these are labor economics concerns.
In what type of exchange rate system is the level of official reserves the most important?
A. Reserves are equally important in all systems B. A partially-flexible exchange rate system C. A fixed exchange rate system D. A flexible exchange rate system