________ Involve(s)a Cash Flow That Never Occurs,but We Need to Add

question 91

Multiple Choice

________ involve(s) a cash flow that never occurs,but we need to add it as a cost or outflow of a new project.

• A)Cost recovery of divested assets
• B)Capital expenditures
• C)Sunk costs
• D)Opportunity costs

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Definitions:

Expectations

Beliefs or forecasts about future events that affect economic decisions, such as consumption, savings, and investment.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a good or service, potentially leading to higher prices and lower output.

Short-Run Phillips

A concept describing the inverse relationship between unemployment and inflation within a short-term period.

Left

Politically, refers to ideologies and movements that typically advocate for social equality, government intervention in the economy to redistribute wealth, and the protection of social welfare programs.