The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The slope between points C and D equals

Sunk costs

A) are costs that firms sink into marketing. B) are important for optimal decision making. C) are costs associated with repairing something you already own. D) are costs that have already been paid and cannot be recaptured in any significant way.

If the United States is to reduce poverty by using a negative income tax, the guaranteed income should be

a. two times the tax rate. b. close to the poverty line. c. close to the median income of all families. d. above the poverty line.