Kate receives two free passes to the waterpark for her birthday. She's not a huge fan of waterparks, and, therefore, would not buy such tickets for their face value of $90. Kate decides to use the tickets. This type of behavior is explained with the concept of:
A. the implicit cost of ownership.
B. the fungibility of money.
C. ignoring sunk costs.
D. None of these.
A. the implicit cost of ownership.
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When there are no externalities
A) social costs are greater than private costs. B) social costs are less than private costs. C) private costs are greater than social costs. D) private costs equal social costs.
Which of the following is often described as the most powerful person in the U.S. economy?
A. The president of the United States. B. The Speaker of the House of Representatives. C. The chairman of the House Ways and Means Committee. D. The chairman of the Federal Reserve.
Marginal—rather than only average or per-unit--costs should guide decisions because marginal costs
What will be an ideal response?
The appropriate fiscal policy stance depends, at least partly, on the
A. stance of trade policy. B. stance of monetary policy. C. party in power in Congress. D. party in power in the presidency.