A ______ cost is ______ if the firm doesn't incur the cost if it produces no output.
A. fixed; sunk
B. fixed; explicit
C. variable; sunk
D. fixed; avoidable
D. fixed; avoidable
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A production possibilities curve shows the:
A. dollar costs of producing two different goods. B. amounts of labor and capital needed to produce one good. C. various combinations of goods that can be produced. D. prices of different goods that are produced in an economy.
The NAFTA would probably not have been ratified by Congress without labor and environmental side agreements
Indicate whether the statement is true or false
You borrow at a nominal interest rate of 10 percent. If the inflation rate is 4 percent, then the real interest rate is
A) 6 percent. B) 14 percent. C) the $10 in interest you have to pay. D) 16 percent. E) 2.5 percent.
When the price of one product falls,
A. consumers’ real income will increase. B. consumers will buy less of that product. C. consumers will not change their buying patterns. D. consumers’ real income will decrease.