The lesson of __________ is to forget about the money that's irretrievably gone and instead to focus on the marginal costs and benefits of future options.
A. marginal utility
B. sunk costs
C. marginal analysis
D. budget constraints
Answer: B. sunk costs
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Unanticipated inflation always benefits somebody, so the overall cost cannot be higher than it is for anticipated inflation. Comment
What will be an ideal response?
In the graph shown above, if the government set a price ceiling of $26.
A. there would be a permanent shortage, at least until the price ceiling was lifted.
B. there would be a temporary shortage, then the price would fall to equilibrium price.
C. price would rise to the equilibrium price.
D. price would immediately fall to the equilibrium price.
In order to minimize the net cost of pollution reduction, the level of pollution reduction (the amount of a pollutant not released into the environment) should be the level at which
A. the total cost of reducing pollution is minimized and the total benefits of reducing pollution are maximized. B. the marginal benefit of reducing pollution equals the marginal cost of reducing pollution. C. the total benefit of reducing pollution equals the total cost of reducing pollution. D. the marginal benefit of reducing pollution exceeds the marginal cost of reducing pollution by the greatest possible amount.
Production costs to an economist:
A. consist only of explicit costs. B. reflect opportunity costs. C. never reflect monetary outlays. D. always reflect monetary outlays.