Sunk costs should be ignored in decision making because they
a. increase the cost of the transaction
b. lead to an increase in the opportunity cost of any decision
c. have already been paid
d. often exceed marginal and average costs
e. are usually negligible when compared with the explicit costs of decisions
C
Economics
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A balanced budget occurs when
A) the national debt is reduced to zero dollars. B) a budget deficit during one year is matched by a budget surplus in the next year. C) transfer payments equal tax revenues. D) government expenditures equal tax revenues. E) the deficit-GDP ratio equals one.
Economics
________ is an income measured in terms of the goods and services it can buy; real income changes when the price changes?
a) law of demand b) real income
Economics