Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?
A. Rent paid for the use of equipment owned by the Schultz Machinery Company
B. Payments of wages to its office workers
C. Economic profits resulting from current production
D. Depreciation charges on company-owned equipment
Answer: D
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Economies of scale occur when the percentage increase in output
A) exceeds the percentage increase in all inputs. B) is less than the percentage increase in all inputs. C) exceeds the percentage decrease in all inputs. D) is less than the percentage decrease in all inputs.
The underground economy can be described as
A) production of intermediate goods and services. B) economic production that includes mining. C) production of infrastructure that spurs growth in the rest of the economy. D) economic activity that is hidden from the government to avoid taxes or because the activity is illegal.
The 1920s is sometimes described as the decade representing the emergence of "mass society." This refers to developments in all of the following except
(a) Production methods and communication systems (b) Consumption patterns and installment credit (c) Attitudes and culture (d) There is no "except"; all of the above are part of the emergence of "mass society"
Which of the following statements is correct?
a. Approximately 50 percent of our national income is allocated to human capital, while the remaining 50 percent is allocated to physical capital in the form of rents, interest, and corporate profits. b. As union membership as a share of the U.S. labor force has declined during the last three decades, the share of national income allocated to physical capital has risen. c. Unions have consistently opposed minimum wage legislation because it tends to cause unemployment. d. During the past several decades, the share of output going to capital has been virtually constant, even though union membership as a share of the labor force has decreased.