Howie just bought a new digital camera to replace his old one. His old one works perfectly fine and would sell on Craigslist for $100. The fact that Howie would not pay $100 for it, yet continues to let it sit in his closet unused is explained by:
A. the implicit cost of ownership.
B. the explicit cost of ownership.
C. ignoring sunk costs.
D. the explicit cost of sales.
Answer: A
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Lower than expected inflation rate: a. shifts short-run Phillips curve to the right
b. shifts short-run Phillips curve to the left. c. shifts both short-run and long-run Phillips curve to the right. d. shifts both short-run and long-run Phillips curve to the left.
Because economists have different values, like everyone else, they
a. tend to be self centered, so positive economics is impossible b. ignore politics c. use abstraction to be realistic d. may disagree, even though economic theory is based on positive statements e. try to be right all the time
Suppose the long-run supply curve for a good is upward-sloping. The upward slope could be explained by
a. decreases in production costs resulting from more firms coming into the market. b. a breakdown of the "free entry and exit" feature of competition. c. a breakdown of the "price taking" feature of competition. d. the fact that a resource used in the production of the good is available only in limited quantities.
Tax can fall disproportionately on certain income groups. High-income households (HH) are impacted by gasoline taxes the most.
a. true b. false