The monthly mortgage payments made by a homeowner are
A) always sunk costs because the costs of constructing the house lie entirely in the past.
B) marginal costs if the house is new but sunk costs if it was purchased from a previous owner.
C) marginal costs of continuing to own and occupy the house.
D) not marginal costs because the house will continue to exist whether or not the payments are made.
E) sunk costs only if all the bills for earlier construction work have been fully paid.
C
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Which of the following is the most liquid asset?
a. a certificate of deposit b. a government bond c. a share of corporate stock d. a checking account balance e. fine jewelry
Suppose your accountant told you that the $50,000 you made last year was the total revenue you earned minus both explicit and implicit costs. You would be pleased because that $50,000 represents your
a. economic loss b. economic profit c. normal profit d. money receipts and payments and you came out ahead by $50,000 e. accounting profit