Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?
A. Payments of wages to its office workers.
B. Rent paid for the use of equipment owned by the Schultz Machinery Company.
C. Use of savings to pay operating expenses instead of generating interest income.
D. Economic profits resulting from current production.
Answer: C
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Primary credit is only a backup source of funds for health banks since
A) the primary credit rate is set above the federal funds rate. B) restrictions as to its use limit its benefits. C) the secondary credit rate pays 0.5% more. D) banks must seek funds from other sources prior to requesting a discount loan.
. An employer asking for a list of references from a potential employee is an example of:
A. signaling. B. screening. C. statistical discrimination. D. building a reputation.
The Big Mac index compares:
A. the cost of a Big Mac all over the world. B. the cost of a typical basket for consumers all over the world. C. typical food costs, as food is the largest component of all consumption baskets. D. typical food and energy costs across different locations.
The effects of a higher than expected price level are shown by
a. shifting the short-run aggregate supply curve right. b. shifting the short-run aggregate supply curve left. c. moving to the right along a given aggregate supply curve. d. moving to the left along a given aggregate supply curve.