This topic contains a solution. Click here to go to the answer

Author Question: Sunk costs are irrelevant to economic decisions because A) they are merely opportunity costs ... (Read 98 times)

yoooooman

  • Hero Member
  • *****
  • Posts: 557
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?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

1_Step_At_ATime

  • Sr. Member
  • ****
  • Posts: 342
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

  • Member
  • Posts: 557
Reply 2 on: Jun 29, 2018
:D TYSM


  • Member
  • Posts:
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

Opium has influenced much of the world's most popular literature. The following authors were all opium users, of varying degrees: Lewis Carroll, Charles, Dickens, Arthur Conan Doyle, and Oscar Wilde.

For a complete list of videos, visit our video library