Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. The implicit cost for one birdhouse is
a. $4.
b. $5.
c. $8.
d. $9.
a
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For each outcome below, tell what type of shift must have taken place in either the aggregate demand curve or the long-run aggregate supply curve
(a) In the short run, the price level is unchanged and output rises. (b) In the long run, the price level declines and output is unchanged. (c) In the long run, the price level rises and output declines.
The Equivalent Variation resulting from a quota is best defined as
A) the amount a consumer would pay to have the quota removed. B) the amount the consumer would need to voluntarily accept the quota. C) the amount a consumer would pay for the quantity specified by the quota. D) the loss in utility resulting from the quota.
For most Third World countries, the key source of capital accumulation is _____
a. internal debt b. foreign direct investment c. domestic business spending d. domestic saving e. foreign aid
That the money form should be homogeneous is another way of saying that all units of money should be
a. durable b. portable c. stable d. identical e. divisible