Economic Value Added helps firms to avoid the hidden-cost fallacy
a. by ignoring the opportunity costs to using a capital
b. by differentiating between sunk and fixed costs
c. by taking all capital costs into account including the cost of equity
d. none of the above
c
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When the price level rises
a) firms will spend less on new business buildings and business equipment and households will want to spend less building new homes. b) the interest rate falls because people will want to hold more money and so sell bonds. c) the interest falls because people will want to hold less money and so buy more bonds. d) firms will spend more on new business buildings and business equipment and households will want to spend more on building new homes.
What is the price of a TV in an open economy with a quota? 
A. $150 B. $100 C. $125 D. $75
If the GDP deflator decreases from 100 to 90 when you had $4,000, then
A. the value of the $4000 decreases. B. the value of the $4000 remains constant. C. the $4000 will buy 10 percent less of the goods and services produced by society. D. the $4000 will buy 10 percent more of the goods and services produced by society.
Refer to the information provided in Figure 8.6 below to answer the question(s) that follow. 
Figure 8.6 Refer to Figure 8.6. Outdoor Equipment?s ________ are minimized at the output level where curves 1 and 3 intersect.
A. average total costs B. average variable costs C. marginal costs D. average fixed costs