Who ends up paying when sunk costs are incurred as a result of erroneous forecasting?
A) No one pays them because they are sunk.
B) The consumer, because they eventually show up as higher prices.
C) The government, since they fall evenly on the entire community.
D) The taxpayer, because they produce a decline in assessed valuations.
E) Whoever invested in the unsuccessful project.
E
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How can it be that people purchase more of a good while its price is rising?
A) The supply curve must be shifting to the left. B) The demand curve must be shifting to the right. C) Supply and demand do not change. D) It cannot happen, otherwise the law of demand is violated.
The CPI and the GDP deflator
a. generally move together. b. generally show different patterns of movement. c. always show identical changes. d. always show different patterns of movement.
If demand increases while supply simultaneously decreases, then the equilibrium quantity
A) always increases. B) always decreases. C) can never change. D) none of the above
With respect to the market clearing price and the equilibrium quantity of good B, increases in the demand for and the supply of good B will definitely
A) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of B. B) reduce the market clearing price and the equilibrium quantity of good B. C) increase the market clearing price and the equilibrium quantity of good B. D) increase the equilibrium quantity of good X but have an uncertain impact on the market clearing price of B.