Arnold Kim began blogging about Apple products during his fourth year of medical school. Kim's Website, MacRumors
com, became so successful that he decided to give up his medical career and work full time on his Website, despite the nearly $200,000 he had invested in his education. In making his decision, the $200,000 he spent on his education
A) should be considered since it is money he could have used to invest in his Website.
B) should be ignored only if Kim can earn more than $200,000 by running his Website.
C) should be considered since it is money he has spent and needs to recoup.
D) should be ignored since it represents a sunk cost.
D
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Refer to the figure above. If the government was to auction quota licenses competitively, it could earn up to
A) $2000. B) $5000. C) $6000. D) $10000.
Consider the accompanying payoff matrix.
Is this game a prisoner's dilemma?
A. It's a prisoner's dilemma for player B, but not for player A. B. It's a prisoner's dilemma for player A, but not for player B. C. No. D. Yes.
The median Head Start teacher has been teaching
A. between 6 months and a year. B. 15 years with Head Start and 20 years total. C. 5 years with Head Start and 10 years total. D. less than 6 months.
Product differentiation can lead to gains in economic welfare.
Answer the following statement true (T) or false (F)