Which of the following is not an explicit cost?
a. salaries
b. sales taxes
c. the cost of utilities, such as gas and electricity
d. insurance premiums
e. the value of a firm owner's time
E
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If a perfectly competitive firm can sell each unit of output for $9, and the marginal cost of the last unit produced is $8.50, then the:
A. firm should lower its output level in order to increase profits. B. extra benefit of the last unit produced is less than the extra cost. C. firm is earning an average profit of $0.50. D. extra benefit of the last unit produced is greater than the extra cost.
The Consumer Price Index includes
A. the top selling 50 goods and services each month. B. all of the goods and services produced in the economy. C. only goods and services produced domestically. D. goods and services from 8 major categories.
Explain how an increase in the American demand for Chinese goods leads to a change in the Chinese yuan relative to the U.S. dollar
If a lender expects inflation to be 5 percent, and after a loan is made, actual inflation is 10 percent, which of the following will be true?
a. The lender will receive a lower real interest rate than he expected. b. The loan will be repaid with dollars that are worth more than the lender expected. c. The nominal rate of interest can be expected to fall in the future. d. The lender will gain at the expense of the borrower.