Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. An accountant would calculate the total cost for one birdhouse to be

In the late 2000s, which of the following was the primary source of external financing for small to medium-size firms?

A) mortgages B) bank loans other than mortgages C) trade credit D) other loans

When social and private costs differ, economists state that

A) there will be economic profit in the society. B) the society will produce inside the production possibilities frontier. C) there is an externality. D) there is not an efficiency problem but an equity problem.