Cash payments to a steel mill for steel used in production of automobiles would be an example of
a. sunk costs
b. fixed costs
c. explicit costs
d. implicit costs
e. entrepreneurial costs
C
You might also like to view...
Those who favor smaller government tend to do what in order to make it more difficult for politicians to increase government spending? List at least two methods
What will be an ideal response?
The law of diminishing marginal utility
a. is valid only after basic necessities (such as food and shelter) have been obtained b. says that marginal utility decreases as more of a good is consumed c. implies that spending on a good will decrease as more of that good is consumed d. says that marginal utility decreases as income increases e. implies that spending on a good decreases as income increases
A firm scaled down its operation by reducing all inputs by 50% and experienced a less-than-50% decrease in output. If all input prices remain unchanged, the firm's long-run average cost exhibits:
A. economies of scale at the current output level. B. diseconomies of scale at the current output level. C. a constant long-run average cost at the current output level. D. diminishing marginal returns at the current output level.
Which of the following occurs as the economy moves rightward along a given IS curve?
A) A reduction in the interest rate causes investment spending to decrease. B) A reduction in the interest rate causes money demand to increase. C) A reduction in the interest rate causes a reduction in the money supply. D) An increase in government spending causes a reduction in demand for goods. E) A reduction in taxes causes a reduction in demand for goods.