A hidden cost fallacy can be avoided
a. by ignoring the opportunity costs to using a capital
b. by ignoring the cost of capital
c. by taking all capital costs into account including the cost of equity
d. none of the above
c
You might also like to view...
The values of real GDP and real GNP are almost the same for the United States
Indicate whether the statement is true or false
Behavioral economists view the standard economic theory of decisions involving time as being too restrictive because people have:
A. lapses in self-control. B. perfect foresight. C. a tendency to ignore sunk costs. D. lapses in self-control and a tendency to ignore sunk costs.
The median voter
a. is the voter exactly in the middle of the distribution. b. is the voter whose preferred outcome beats any other proposal in a two-way race. c. always has more than half the votes on his side in a two-way race. d. All of the above are correct.
What happens when the supply of a nonperishable good is greater than what consumers want to buy?
a. the good is discarded b. the good becomes a luxury and the price rises c. either the good is saved for later sale or the price is raised d. either the good remains unsold or the price drops