When economists refer to a production cost that has already been committed and cannot be recovered, they use the term
a. implicit cost.
b. explicit cost.
c. variable cost.
d. sunk cost.
d
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A monetary growth rule means that
A) the Fed will raise interest rates if it thinks the economy is growing faster than potential. B) the money supply should grow at a constant rate. C) the Fed will lower interest rates if it thinks a recession is on the horizon. D) the money supply should grow in response to economic conditions.
Refer to the above figure. A farmer has 50 acres of land on which to grow wheat or beans. An acre of land yields 400 bushels of beans or 800 bushels of wheat
Which of the following is a possible combination of beans and wheat that can be grown, assuming the land is farmed efficiently? A) 30,000 bushels of each B) 15,000 bushels of beans and 10,000 bushels of wheat C) 25,000 bushels of beans and 25,000 bushels of wheat D) 20,000 bushels of beans and 40,000 bushels of wheat
According to the random walk theory
A) today's stock price will be related to yesterday's stock price. B) successive prices of a stock are independent of each other. C) stock prices can easily be predicted for as much as 52 weeks into the future. D) stock prices rise and fall in predictable cycles that correspond with the overall business cycle.
The Clean Air Act of 1970 has
a. been ineffective in reducing lead emissions in automobiles b. actually caused an increase in auto emissions c. been fairly successful in reducing auto emissions, especially lead d. been unsuccessful in reducing auto emissions, especially sulfur oxides e. been ineffective in reducing carbon monoxide emissions from autos