Sunk Cost
What will be an ideal response?
- Something you've already paid for, not an incremental cost
- Already been incurred and cannot be recovered, special type of fixed cost
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If disposable income increases, people will decide to ________ saving, the supply of loanable funds will ________ and the real interest rate will ________
A) increase; decrease; rise B) decrease; decrease; rise C) increase; increase; fall D) decrease; increase; fall
Of the following, demand is likely to be the most elastic for
A) food. B) cars. C) Sony Blu-ray players. D) personal computers.
Equilibrium price
What will be an ideal response?
Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to
A) use resources very carefully and in small quantities. B) garage his car and drive very seldom. C) be making a positive contribution to the greater community. D) drive too much and use up more scarce resources than he would if he had to cover all his costs.