A fast-food company spends millions of dollars to develop and promote a new hamburger on their menu only to find that consumers won't buy it because they don't like the taste. From an economic perspective, the company should:
A. Keep the hamburger on the menu because they've spent so much money and time developing and promoting the product
B. Spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time
C. Pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost
D. Keep trying to sell the hamburger so that people who developed and promote it have a job with the company
C. Pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost
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Minerals, water, and forests are all considered to be part of the broad resource category known as
a. land. b. capital. c. entrepreneurship. d. labor. e. none of the above
Savers supply funds to those who want to borrow for their investment spending needs in the:
A. market for loanable funds. B. market for savings. C. market for interest rates. D. stock market.
If the government uses a head tax to finance a public good, then the:
A. proportion of income paid in taxes increases as income rises. B. proportion of income paid in taxes declines as income rises. C. proportion of income paid in taxes is constant. D. dollar amount paid by each taxpayer declines as income rises.
Two of the three largest banks in the world are located in
A. the United States. B. Japan. C. Germany. D. the United Kingdom.