Which of the following are implicit costs for a typical firm?
a. Insurance costs.
b. Electricity costs.
c. Opportunity costs of capital owned and used by the firm.
d. Cost of labor hired by the firm.
e. The cost of raw materials.
c
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What is meant by productive efficiency? How does a perfectly competitive firm achieve productive efficiency?
What will be an ideal response?
The largest component of the money supply (M1 ) is
A) time deposits. B) large CDs. C) demand deposits. D) coin and currency.
New classical economists believe that wages are inflexible
a. True b. False Indicate whether the statement is true or false
Suppose that you lend $5,000 to a friend who pays you back $5,400 the next year. Suppose that prices that year rose by six percent and the real rate of return in the stock market was five percent. Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return. What do you think?
What will be an ideal response?