The opportunity cost of undertaking an activity includes any sunk cost.
Answer the following statement true (T) or false (F)
False
Sunk costs are costs that already have been incurred and cannot be recovered no matter what action is taken. Thus, they do not represent an opportunity cost, which are an additional cost.
You might also like to view...
At one point along a PPF 40 tons of wheat are produced while 80 tons of rice are produced. At another point along the same PPF, 41 tons of wheat are produced while 70 tons of rice are produced
The opportunity cost of producing a ton of wheat between these points is ________ per ton of wheat. A) 1/2 ton of rice B) 10 tons of rice C) 1/10 ton of rice D) 4/7 ton of rice
The unemployment rate may underestimate the true extent of unemployment if: a. many part-time employees would like to work full-time, but are unable to get the additional work. b. employees increase the number of hours they work overtime
c. there are a large number of people working in the underground economy. d. any of the above occur.
In an open shop no one is forced to ___________.
Fill in the blank(s) with the appropriate word(s).
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If the condition of the economy at Point H is realized by policy makers when the economy is at Point I, policy is likely to be inappropriate due to
A. the implementation lag. B. the response lag. C. crowding out. D. the recognition lag.