Anthony decides to open a café in his garage. He takes the help of his friend, Tess, who agrees to wait on customers for the initial few months. Which of the following is an example of an explicit cost that Anthony could possibly incur?
a. The salary that Anthony could have received by working at a bake house
b. The salary that Tess could have received by working at any other café
c. The price of ingredients required by Anthony
d. The payment that Anthony could have received by renting out his garage to a start up
c
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The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___
a. the Federal Reserve finally decided to act as lender of last resort b. the stock market boom finally came to an end with the crash c. banks in all regions of the country failed d. President Roosevelt asked Congress to establish Federal deposit insurance
Moral hazard occurs when an informed party benefits in an exchange by taking advantage of knowing more than the other party
a. True b. False Indicate whether the statement is true or false