Mika withdraws $100,000 from her trust fund to start up her own manicure business. The trust fund earns 4 percent interest. In order to properly account for all costs of her business, Mika must not forget:
A. the implicit cost of $104,000.
B. the implicit cost of $4,000.
C. the explicit cost of $104,000.
D. the explicit cost of $4,000.
B. the implicit cost of $4,000.
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In a market socialist economy
a. Resources are allocated by the market b. Property is owned by the state or by collectives c. Information is centralized d. There are no public choices e. Both a and b
Which of the following statements about the U.S. national debt is not correct?
A. The national debt represents both a liability and asset to future generations. B. The primary economic costs of the debt are being passed on to future generations. C. The primary burden of the debt is incurred when the deficit-financed activity takes place. D. Future generations will bear some of the debt burden when crowding out occurs.
All of the following shift the LAS curve EXCEPT
A) a change in the capital stock. B) an increase in the money wage rate. C) an increase in the stock of human capital. D) technological progress.
One reason why, in the short run, the marginal product of labor might increase initially as more workers are hired is that
A) the first workers hired get to use the best equipment. B) specialization allows a worker to focus on one task, thereby increasing her proficiency at that task. C) the best workers are hired first and later hires are not as skillful. D) beyond some point, a firm has hired too many workers.