Unlike implicit costs, explicit costs:
A. reflect opportunity costs.
B. include the value of the owner's time.
C. are not included in the accounting statement of the firm.
D. are actual cash payments.
Answer: D
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A monopolistic competitor incurs losses if ________
A) price is higher than average total cost B) price is lower than marginal cost C) price is equal to marginal cost D) price is lower than average total cost
Deficits that arise from discretionary fiscal policy lead to: a. increased private demand for money, which is offset by the sale of more government securities
b. decreased private demand for money, which is offset by the sale of more government securities and higher interest rates c. increases in the number of government securities sold to the public and higher interest rates. d. decreases in the number of government securities sold to the public and higher interest rates. e. increases in the public's demand for money and increases in the number of government securities sold to the public, leading to lower interest rates.
According to purchasing power parity, the nominal exchange rate between the U.S. and another country should equal the price level of foreign goods divided by the price level of U.S. goods
a. True b. False Indicate whether the statement is true or false
Figure 17-2
In , in the absence of trade, the domestic price of shoes is Pn. Since many foreign countries have a comparative advantage in the production of shoes, when the United States begins to trade, the domestic price will fall to the world price. When this happens, what does the quantity Qc through Qp represent?
a.
the quantity of shoes that the United States imports
b.
an increase in the world consumption of shoes
c.
the quantity of shoes that the United States exports
d.
a reduction in the world consumption of shoes