How can managers of natural monopolies exaggerate their costs?
What will be an ideal response?
By increasing on-the-job luxury items such as sumptuous office suites, limousines, golf competitions at expensive locations, company jets, and other non-necessary expenditures, the managers can exaggerate their costs over what is truly necessary to produce the product.
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To an economist, total costs include
A) explicit, but not implicit costs. B) implicit, but not explicit costs. C) explicit and implicit costs. D) neither explicit nor implicit costs.
A flexible exchange rate regime
A) does not describe the regime follow by the European Central Banks. B) keeps the exchange rate fixed but lets the price of gold fluctuate C) allows a currency to float D) none of these choices.
An increase in the population of an economy can shift the demand curves for certain goods and services to the right
a. True b. False Indicate whether the statement is true or false
Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?
A. M2 increases and M1 stays the same. B. M1 decreases and M2 increases. C. M1 increases and M2 stays the same. D. M1 increases and M2 decreases.