The opportunity cost of capital is
A) the rate of return realized on an investment.
B) the rate of return that could be earned by the owner's capital were it used elsewhere.
C) the rate used to calculate a firm's tax liability.
D) the rate of interest the government uses to calculate legal business tax penalties.
Answer: B
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The diagram above depicts the demand for, and market price of, buckets of raw oysters in Orlando
a. What is the consumer surplus of the person who buys the 100th bucket of oysters? b. What is the consumer surplus of the person who buys the 200th bucket of oysters? c. What is the consumer surplus of the person who buys the 300th bucket of oysters? d. What is the total consumer surplus from all the oysters consumed in the market?
Private goods are ________
A) excludable but non-rival in consumption B) non-excludable and non-rival in consumption C) non-excludable but rival in consumption D) excludable and rival in consumption
Labor productivity is
A) the quantity of capital one worker can produce in one day. B) the quantity of output produced in one hour by several workers. C) the quantity of output produced in one hour by one machine. D) the quantity of output produced by one worker or by one hour of work.
Suppose an economy originally in long-run equilibrium experiences a decrease in aggregate demand. According to the classical model
A. real Gross Domestic Product (GDP) will fall, and then the price level will fall also. B. the price level will not change but real Gross Domestic Product (GDP) will fall. C. real Gross Domestic Product (GDP) will fall, wages will fall, but the prices of goods and services will stay the same. D. real Gross Domestic Product (GDP) will not change but the price level will fall.