The sacrifices made by societies in order to engage in military spending represent
A) the real costs of military spending. B) the excessive costs of military spending.
C) the nominal costs of military spending. D) the opportunity costs of military spending.
D
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Frank owns Frank's Shoes. During a particular period, the price of shoes rises and Frank produces more shoes by hiring more workers and using more material, such as leather. However, he still works with the same size factory because he has a long-term lease. You know that
a. by producing more, Frank's supply curve of shoes shifts to the right b. the factory is overworked so that Frank cannot maintain the production levelhe selected c. by producing more, Frank's demand curve for shoes shifts to the left d. Frank is producing in the short run e. Frank is producing in the long run
Farouk owns a family portrait studio. Three months ago, he spent $2,000 on a new Wizard-brand camera, with the expectation that it would make his photo shoots go faster and enable him to serve more customers. However, the Wizard camera has proven to be so difficult to use that it is slowing him down and costing him business. Farouk is now trying to decide if he should purchase a Sorceress-brand camera to replace the Wizard camera. In this scenario, what is Farouk’s sunk cost?
a. the business Farouk lost because of his new camera b. the price of the Sorceress camera c. the price of the Wizard camera d. the time it would take Farouk to master the Wizard camera