Consider a small hair styling salon. List some examples of implicit costs of this business
the lost earnings of the owner who could work at a different occupation, the forgone interest on any monies invested in the business
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Double counting occurs when:
A) inputs are included in the calculation of the gross domestic product. B) household production is included in the calculation of the gross domestic product. C) depreciation is included in the calculation of the gross domestic product. D) unsold inventories are included in the calculation of the gross domestic product.
Which of the following represents the law of supply?
A) An increase in the price of a good causes an increase in the supply of that good. B) An increase in the price of a good causes a rightward shift of the supply curve for that good. C) An increase in the price of a good causes an increase in the quantity supplied of that good. D) all of the above
Even if a tax imposed in a market generates a loss in surplus for the participants in that market, the tax could still increase economic efficiency if:
A. the government needs to generate tax revenue. B. the public expenditures financed by the tax lead to a big enough increase in economic surplus. C. the tax revenue is used to fund spending by local governments. D. voters approve of the tax.
PriceQuantity Demanded$4300$3400$2500$1600Refer to the above data. What is the elasticity of demand between the prices of $4 and $3?
A. 0.2 B. 2 C. 0.5 D. 1