The distinction between sunk and incremental costs is most helpful in answering which question?
A) How many more people should be added to the production process?
B) What is the correct price to charge?
C) Should we begin to build a new factory?
D) Should we continue developing a new software application that we began last year?
D
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The recognition lag is
A) the time it takes for policy makers to obtain data indicating what is happening in the economy. B) the time it takes for policy makers to be sure of what the data are signaling about the future course of the economy. C) the time it takes to pass legislation to implement a particular policy. D) the time it takes for policy makers to change policy instruments once they have decided on the new policy. E) the time it takes for the policy actually to have an impact on the economy.
The circular flow diagram divides the economy into:
a. Producer sector and consumer sector. b. Real sector and nominal sector. c. Domestic sector and foreign sector. d. Operating sector and non-operating sector. e. Winners and losers.
The income tax requires that taxpayers pay 10percent on the first $40,000 of income and 20 percent on all income over $40,000 . Emily paid $9,000 in taxes. What were her marginal and average tax rates?
a. 20 percent and 13.8 percent, respectively b. 20 percent and 15 percent, respectively c. 10 percent and 13.8 percent respectively d. 10 percent and 15 percent respectively
Consumption possibilities, during a given time period, refer to the
A. Amount by which a country can expand its production possibilities by engaging in international trade. B. Maximum amount that a country can produce if it imports and does not export. C. Maximum amount of imported goods and services that a country can consume. D. Alternative combinations of goods and services that a country could consume in a given period of time.