Which of the following is a common mistake consumers commit when they make decisions?
A) They take into account nonmonetary opportunity costs but ignore monetary costs.
B) They are overly pessimistic about their future behavior.
C) They fail to ignore sunk costs.
D) They sometimes value fairness too much.
Answer: C
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Automatic stabilizers
a. increase the problems that lags cause in using fiscal policy as a stabilization tool. b. are changes in taxes or government spending that increase aggregate demand without requiring policy makers to act when the economy goes into recession. c. are changes in taxes or government spending that policy makers quickly agree to when the economy goes into recession. d. All of the above are correct.
A firm is experiencing ________ on the downward-sloping portion of a firm's long run average cost curve.
A. constant returns to scale B. diminishing marginal returns C. increasing returns to scale D. decreasing returns to scale