The manager of a firm operating in a competitive market can ignore sunk costs when making business decisions
a. True
b. False
Indicate whether the statement is true or false
True
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One explanation for the growth in the U.S. economy over the last 100 years is:
A. a large increase in human capital. B. Human capital was not the cause of growth in the United States over the last 100 years. C. a rapid decline in human capital. D. a small, incremental increase in human capital.
In presenting the idea of a demand curve, economists presume the most important variable in determining the quantity demanded is
A. the price of the product itself. B. the prices of related goods. C. consumer income. D. consumer tastes.
Which of the following lists includes only capital resources (and therefore no labor or land resources)?
A. An ice arena; a professional hockey player; hockey uniforms. B. The owner of a new startup firm; a chemistry lab; a researcher. C. A hydroelectric dam; water behind the dam; power lines. D. Autos owned by a car rental firm; computers at the car rental agency; the vans that shuttle rental customers to and from the airport.
A local government currently has a tax base of $4 million and a tax rate of 5 percent. If the tax rate is increased to 6 percent, the tax base will decrease to $3.5 million. If the goal is to maximize tax revenues the tax rate should be
A) lowered below 5 percent. B) kept at 5 percent. C) raised to 6 percent. D) abolished.