Sunk costs are irrelevant to economic decisions because A) ...

[yoooooman]

Sunk costs are irrelevant to economic decisions because
 
  A) they are merely opportunity costs rather than monetary expenditures.
  B) they cannot affect a firm's net revenue.
  C) they do not appear on financial statements.
  D) they represent no opportunity for choice.

Question 2

Why is growth in GDP different from growth in a nation's standard of living? Is it possible for a nation's GDP to grow while its standard of living falls?
 
  What will be an ideal response?

[1_Step_At_ATime]

Answer to Question 1

D

Answer to Question 2

The standard of living is measured by real GDP per person, so growth in the standard of living equals growth in real GDP per person. The growth rate of real GDP per person equals the growth rate of real GDP minus the growth rate of the population. Hence it is indeed possible for a nation's GDP to grow, while its standard of living decreases. This outcome occurs whenever the population grows more rapidly than real GDP.

[yoooooman]

Thanks for the timely response, appreciate it

[kthug]

Gracias!