Which of the following is an implicit cost of production?
A) interest paid on a loan to a bank
B) wages paid to labor plus the cost of carrying benefits for workers
C) rent that could have been earned on a building owned and used by the firm
D) the utility bill paid to water, electricity, and natural gas companies
C
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How many dollars do you need to buy a Swedish Kronor (SEK) when the exchange rate is $1 = 6.429 SEK?
a. $0.016 b. $1.056 c. $0.649 d. $0.156 e. $1.56
The textbook suggests that if the governments of poor countries genuinely want faster economic growth, they are making a serious mistake if they
What will be an ideal response?
If an industrial union is formed to bargain with a monopsonistic employer, then in this labor market:
A. the resulting wage rate will always be above the competitive level. B. employment may either increase or decrease. C. employment will increase. D. employment will decrease.
An increase in the ratio of capital to labor ________ labor productivity.
A. increases B. will not change C. has an ambiguous impact on D. decreases