Fixed Costs Are Always Sunk Costs

question 58

True/False

Fixed costs are always sunk costs.

---

Definitions:

Tax Cuts

Reductions in the amount of taxes imposed by a government on individuals or entities.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by the rise in GDP.

Federal Budget Deficit

A situation where the federal government's expenditures exceed its revenues within a given fiscal year.

Paradox of Thrift

If everyone tries to save more, they will all end up saving less.