Sunk costs:
A. should be considered only when there is no information about marginal cost and marginal benefit.
B. should be considered, but only when marginal cost is less than marginal benefit.
C. are an essential part of economic decision making.
D. are irrelevant to economic decision making.
Answer: D
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Referring to a production possibilities curve and the goods being compared, depict the economic event. The AIDS epidemic becomes rampant in America claiming millions of lives (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on or near the curve B. A movement from a point on or near the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the ________ equals ________
A) unemployment rate; 25/100 × 100 B) unemployment rate; 25/75 × 100 C) labor force; 75 D) labor force; 25/100 × 100
Which curve is analogous to the monopsonist's demand curve?
A) ME B) AE C) MV D) MC
If an excise tax is placed on a product that has a perfectly inelastic demand, then: a. the entire tax will be paid by the consumer
b. the entire tax will be paid by the producer. c. the consumer and producer will each pay a share of the tax. d. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply. e. the tax is progressive.