If the Price of Domestically Produced Power Tools Increases,then

question 18

Multiple Choice

If the price of domestically produced power tools increases,then

• A)the consumer price index and the GDP deflator will both increase.
• B)the consumer price index will increase,and the GDP deflator will be unaffected.
• C)the consumer price index will be unaffected,and the GDP deflator will increase.
• D)the consumer price index and the GDP deflator will both be unaffected.

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Definitions:

Sunk Cost

A cost that has already been incurred and that cannot be changed by any decision made now or in the future.

Potential Benefit

The expected advantages or positive outcomes that may result from a specific action, investment, or decision.

Sunk Cost

A cost that has already been incurred and cannot be recovered, and thus should not impact future business decisions.

Gross Margin

The difference between sales revenue and the cost of goods sold, usually expressed as a percentage of sales revenue.