Mrs. Wallace and Mrs. Jackson both signed up for 6 months (each incurred a $200 total payment required in advance, and nonrefundable) at the local workout club. Wallace enjoyed all 6 months
Jackson dropped out after three months due to other unexpected commitments. Which of the following is true? A) Wallace's sunk cost was zero.
B) Jackson's sunk cost was $100.
C) Jackson's sunk cost was $200, and so was Wallace's.
D) Wallace's sunk cost was $100.
E) None of the above.
C
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Discretionary economic policy is not beneficial in the ________
A) traditional Keynesian theory B) new Keynesian theory C) Luka Brazzi model D) real business cycle theory
How does the science of economics deal with the fact that we all have different values?
A) by assuming that values don't play a role in economic behavior B) by seeking to discover the sources of different value systems C) by using positive analysis D) by surveying the public to see what the most common values are, and then incorporating those as assumptions into their models
As the dollar price of a euro falls
A) U.S. residents will purchase fewer French imports. B) the quantity of euros supplied will increase. C) French goods will be less expensive to U.S. residents. D) French residents will increase their purchases of U.S. assets.
If firms sell less than is expected, actual investment increases because ________, which is counted as investment.
A. the government buys the unsold goods B. households buy the unsold goods are bargain prices C. the unsold goods are distributed to poor households D. the unsold goods are added to inventory