Which of the following is an example of an implicit cost a firm might incur?
A) the wages paid to employees
B) the payment for medical insurance coverage
C) the opportunity cost to investors of the funds invested in the firm
D) utility payments
Answer: C
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A below-full-employment equilibrium
A) is not possible in the U.S. economy. B) occurs when real GDP is less than potential GDP. C) occurs when the price level is rising very quickly. D) occurs when real GDP exceeds potential GDP.
In the United States, since the Great Depression, the federal government has: a. run budget deficits only in periods of recession
b. run a budget deficit in almost every year. c. practiced a policy of annually balancing the budget. d. run budget deficits only in wartime. e. run a surplus in most years.
Refer to the information provided in Figure 6.13 below to answer the question(s) that follow.
Figure 6.13Refer to Figure 6.13. Assume Ellen has two products available, pizza and hamburgers. Ellen must be compensated with more pizzas as she gives up more hamburgers. The curve in Panel ________ represents her indifference curve.
A. A B. B C. C D. D
That which we forgo, or give up, when we make a choice or decision is called
A. marginal cost. B. real cost. C. opportunity cost. D. out-of-pocket cost.