Suppose that you join a gym that charges a $250 membership fee. You also have to pay an additional $5 each time you go the gym. In this case, your sunk cost is:
A. $250.
B. dependent upon the number of time you go to the gym.
C. $5.
D. $250 plus $5 times every visit you make to the gym.
A. $250.
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The natural rate of unemployment includes
A) frictional and cyclical unemployment. B) frictional unemployment and structural unemployment. C) only cyclical unemployment. D) only unemployment due to layoffs and corporate downsizing.
If the government runs a budget deficit to fight a war and there is no Ricardo-Barro effect, what is an impact of the deficit?
A) The quantity of investment increases. B) The real interest rate rises. C) Firms purchase more capital equipment. D) Animal spirits or irrational exuberance is created. E) The quantity of private saving decreases.
If you borrow $5,000 from your bank to purchase shares of Twitter from your cousin Vinny, this is an example of obtaining ________ financing and purchasing the stock in a ________ market
A) indirect; secondary B) indirect; primary C) direct; primary D) direct; secondary
Some economists criticize the Lorenz curve because it
A) includes too many things in measuring income, such as food stamps, housing aid, and other government programs. B) does not account for the effect of age on a family's income. C) measures unreported income earned in the underground economy. D) uses after-tax income when pre-tax income is more appropriate.