An example of a sunk cost would be:
A. the cost of a movie ticket once you've started watching the movie.
B. the value of a lift ticket once you've started skiing.
C. the admission fee you paid to enter a national park.
D. All of these are examples of sunk costs.
D. All of these are examples of sunk costs.
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Explain how to calculate the slope of a line. What does the slope measure?
What will be an ideal response?
Classical economists would cite all of the following as reasons why the government cannot smooth out the business cycle except that
A) only productivity shocks can cause real fluctuations in the business cycle. B) the government has imperfect knowledge of the economy. C) political constraints on policy actions prevent the government from carrying out effective policies. D) time lags between the onset of a recession and the implementation of effective countermeasures make anti-recessionary macroeconomic policies impractical.
Which of the following assets had both the lowest average annual return and lowest risk between 1926 and 2011?
A) small company stocks B) large company stocks C) long-term corporate bonds D) U.S. Treasury bills
The tax multiplier is smaller than the income multiplier
Indicate whether the statement is true or false