Suppose a new textbook sells for $100 at the college bookstore. The bookstore will buy it back at the end of the semester for $35, and sell then it used to somebody else for $75. Christina agrees to the deal, and pays $100
Once she buys the book, her sunk cost is A) $25.
B) $35.
C) $40
D) $65
E) $100.
D
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When will stabilization policy be most effective in combating recessions?
a. when AS is flat b. when AS is very steep c. when AS has a moderately upward slope d. when AS has a moderately downward slope.
Which of the following statements is TRUE?
A. American exports become cheaper for the British when the dollar appreciates. B. Imports from Britain become less expensive for U.S. customers when the dollar depreciates. C. American exports become more expensive for the British when the dollar appreciates. D. Imports from Britain become more expensive for U.S. customers when the dollar appreciates.
Which of the following lists all the components that are included in aggregate demand?
A. Government spending, saving, consumption, and investment. B. Net exports, government spending, consumption, and transfer payments. C. Consumption, government spending, net exports, and investment. D. Investment, imports, exports, and consumption.
What is one possible reason a firm that produces balloons might outsource its accounting department?
A) There are no longer economies of scale. B) There are now economies of scope. C) There are no longer economies of scope. D) There are now economies of scale.