Which of the following would be considered an implicit cost?
A. Health insurance of employees paid for by the firm
B. The water bill of the firm
C. The salaries paid to the managers of the firm
D. Foregone rent on assets owned by the firm
Answer: D
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The V in the equation of exchange represents the:
a. variation in the GDP. b. variation in the CPI. c. variation in real GDP. d. average number of times per year a dollar is spent on final goods and services.
A factor that might have contributed to the weakening of the U.S. economy in 2007-2009 was
A. the impending expiration of the Bush Tax Cuts of 2003. B. rising levels of federal government spending. C. historically-low interest rates. D. rapid growth of the money stock.
Refer to the cost data given below. How much is the firm's total fixed costs?
A. $900
B. $500
C. $400
D. Cannot be determined from the given data
Purchasing power parity does not hold in the short to medium run because
A) exports don't equal imports. B) exchange rates fluctuate too much. C) most business cycles are caused by shocks to aggregate demand. D) countries produce different goods.