Why is a sunk cost irrelevant to a firm's current decisions?
What will be an ideal response?
Sunk cost is irrelevant because it cannot be changed by any decision. It is already incurred and so must be paid. The only costs that concern the firm are costs that the firm can change with its current decisions.
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The fourth stage in the regulatory process is
A) a crisis. B) response by the financial system. C) regulation. D) regulatory response.
Which of the following is true of illegal immigrants?
a. They help improve the quality of goods and services produced in the United States. b. They help increase the wage rate in the U.S. c. They do not affect the equilibrium wage of the U.S. unskilled labor market. d. They help some firms lower operating costs, earn more profit, and produce more. e. They reduce the supply of unskilled labor in the United States.
The data on U.S. growth rates during the last half of the 20th century suggest that when the saving rate increases,
a. the rate of growth can increase or decrease depending on the phase of the businesscycle the economy is in b. the rate of economic growth increases c. the rate of economic growth decreases d. the rate of economic growth is unaffected e. countercyclical fiscal policy is neutralized
Suppose a taxpayer has an income of $100,000 and a taxable income of $80,000, and pays taxes of $10,000. If the taxpayer talks of being taxed at a 10 percent rate, she is referring to the
A. Effective tax rate. B. Nominal tax rate. C. Average tax rate. D. Marginal tax rate.