A movie costs you and your friend $15 each. After one hour of watching the movie, you have struggled to stay awake while your friend has been on Facebook and is also bored with the movie. You suggest that you and your friend leave the movie and go to the park. Your friend responds by stating that he is not going to waste his $15 that was previously spent on the movie. Your friend is considering:
A. an opportunity cost of the movie.
B. the sunk cost.
C. the marginal benefit.
D. Total costs
B. the sunk cost.
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Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
Which of the following will increase the real interest rate?
A) an increase in household saving B) an increase in the demand for loanable funds C) an increase in the budget surplus D) an increase in the supply of loanable funds
The balance of payments is
A) a summary record of the financial transactions of a country's government with foreign governments. B) a summary record of a country's imports and exports of goods with foreign residents and governments. C) a summary record of a country's economic transactions with foreign residents and governments. D) a summary record of a country's purchases and sales of goods and services in the world market.
Which of the following is prerequisite of successful market economies?
A. the existence and enforcement of property rights B. a tax system that redistributes income from the rich to the poor C. the ability of the government to appropriate economic profits beyond a certain amount to ensure equality in income distribution D. a military presence to ensure political freedom