Consider a car dealership that advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month.
B) you value the lease at least $250 per month, the $3600 is a sunk cost.
C) you value the lease less than $350 per month.
D) you value buying a new car at $400 per month.
A
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Suppose the best investment you could make with $100,000 in cash is to purchase a government bond that pays 14 percent interest per year
If you decide to invest the money in your own business instead of buying the government bond, the opportunity cost of this financial capital is A) $1,400 per year. B) $100,000 per year. C) $14,000 per year. D) zero, because you already had the $100,000.
In 2015, imports represented:
A. about 15 percent of U.S. GDP. B. about 1 percent of U.S. GDP. C. about 40 percent of U.S. GDP. D. nearly 70 percent of U.S. GDP.
Which of the following is an example of horizontal equity?
a. A wealthy individual should pay more taxes than a lower-income individual b. A wealthy individual should have a greater average tax rate than a middle-income individual c. Two persons with identical incomes should pay the same taxes d. A local government decides to impose taxes based on the benefits principle
In analyzing the operation of a firm, an economist assumes the firm wants to
A) maximize total sales. B) maximize total revenue. C) maximize total production. D) maximize total profits.