Suppose Pippi buys an oven for her pizza parlor for $100,000. Pippi's pizza tasted so pitiful she went out of business 12 months later. She was able to sell the pizza oven for $75,000. This decrease in the value of the oven is
A) the total implicit rental rate on the oven.
B) an economic loss.
C) economic depreciation.
D) interest forgone.
C
You might also like to view...
When economists say that the demand for a product has decreased, they mean that
A. consumers are now willing and able to buy less of this product at each possible price. B. the demand curve has shifted to the right. C. the product has become particularly scarce for some reason. D. the product has become more expensive and thus consumers are buying less of it.
For a linear demand curve
A. elasticity is constant along the curve. B. elasticity is unity at every point on the curve. C. demand is elastic at high prices. D. demand is elastic at low prices.
Unemployment caused by a business cycle recession is called cyclical unemployment
Indicate whether the statement is true or false
The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve. Suppose a free market exists
If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by A) Q1 units. B) Q2 - Q1 units. C) Q2 units. D) Q1 - Q2 units.