Johnny has worked as a CPA for five years and wants to open his own public accounting practice. The cost of his college degree in accounting represents
A) the opportunity cost of this endeavor.
B) a sunk cost.
C) an expense.
D) a variable cost.
B
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The above figure shows a housing market with a rent ceiling equal to $1,000. In this figure, what area is equal to the resources lost due to search?
A) area A B) area B C) area C D) area D E) area E
If Q is total real output, K is capital in use, L is labor employed, an increase in the productivity of labor would imply a(n): a. increase in K/L
b. increase in L/K. c. increase in Q/L. d. decrease in Q/K. e. decrease in (Q + K)/L.
Assuming QF is the full employment equilibrium then in Figure 11.2, if the level of spending is equal to AD1, the AD shortfall would be
A. Equal to YZ. B. Greater than XZ. C. Equal to XY. D. Equal to XZ.
Which of the following examples involves a durable good?
a. Lotte uses binoculars at a soccer game. b. Sem drinks a soda at a basketball game. c. Sophie eats a hot dog at a baseball game. d. Finn brings a paper bag to put on his head to a football game.