Which of the following would be categorized as an implicit cost?
a. not being able to spend your $10,000 savings if you sink the money in your business
b. the cost of purchasing supplies for your house-cleaning business
c. the cost of purchasing auto insurance for your dry-cleaning delivery business
A) a only B) a and c only C) b and c only D) all of the above
A
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A key reason why some countries are growing very slowly is
A) they lack economic freedom. B) there is too much competition within their economies. C) they lack a democratic government. D) they are too poor, so there is no saving. E) their inflation rate is too high.
Keynes argued that when interest rates were low relative to some normal value, people would expect bond prices to ________ so the quantity of money demanded would ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease