Molly and Tom Are Getting Married

question 19

Multiple Choice

Molly and Tom are getting married.Last month they hired a caterer for the wedding reception.This month they attended a wedding for which their chosen caterer had provided food,dishes and flowers.Neither thought the food was good and Molly worried that the dishes looked cheap.However,they feel they cannot change caterers at this date due to the large deposit required by the catering company when it took the job.Molly and Tom do not want to pay:

• A) Extraneous expenses
• B) Opportunity costs
• C) Switching costs
• D) Fixed costs
• E) Retained costs

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Definitions:

Population Growth

The increase in the number of individuals in a population over a specific period of time.

Real Per Capita Output

The total real output of an economy divided by the population, measuring the average economic output per person in real terms, adjusted for inflation.

Real Output

The quantity of goods and services produced, adjusted for inflation, reflecting the actual productivity of an economy.

Real GDP

Gross domestic product adjusted for inflation; gross domestic product in a year divided by the GDP price index for that year, the index expressed as a decimal.