Which of the following is an implicit cost in Jim's business venture?
i. the salary Jim could have earned at another job
ii. the interest Jim must pay on the loan he incurred to help open his business
iii. the interest Jim lost when he used his savings to help open his business
A) i only
B) ii only
C) iii only
D) i and iii
E) ii and iii
D
You might also like to view...
In the United States, the ________ has the official responsibility for foreign exchange intervention
A) State Department B) International Trade Commission C) Department of Commerce D) Treasury Department
The deadweight loss of taxation from an income tax is because of _____
a. the inclusion of savings in the tax base b. the Laffer curve c. the income effect d. the substitution effect
Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
According to Moe's PPC, moving from a 70 to an 80 in economics:
A. has a lower opportunity cost than moving from an 80 to a 90. B. is unattainable. C. has a higher opportunity cost than moving from an 80 to a 90. D. is inefficient.
The wages of house painters will tend to rise when...
What will be an ideal response?