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
Answer: A
Economics
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The ISLM model can be used to derive
A) aggregate demand. B) aggregate supply. C) the money multiplier. D) the long-run economic growth rate.
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If a perfectly competitive firm is operating in long-run equilibrium and market demand suddenly falls, the short-run result will be
a. greater economic profit b. a normal profit c. lower average total cost d. lower average variable cost e. an economic loss
Economics