Which of the following is an example of an implicit cost?
a. salaries paid to owners who work for the firm
b. interest on money borrowed to finance equipment purchases
c. cash payments for raw materials
d. foregone rent on office space owned and used by the firm
d
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The Ricardo-Barro effect holds that
A) equal increases in taxes and government expenditures have no effect on equilibrium real GDP. B) government budget deficits have no effect on the real interest rate. C) a government budget deficit crowds out private investment. D) a government budget deficit induces a decrease in saving that magnifies the crowding out effect.
The United States has used export subsidies to encourage the exportation of
a. steel. b. agricultural products. c. automobiles. d. computers.
List the four determinants of an economy's productivity
Which of the following is NOT a function of the Federal Reserve System?
A. making loans to private firms B. supervising member banks C. holding deposits of member banks D. providing for check collection and clearing