Sunk Costs Are

question 92

Multiple Choice

Sunk costs are:

• A)costs that have been incurred and cannot be recovered.
• B)explicit costs that will incur large implicit costs to recoup or recover.
• C)costs that are upfront on a project and should be pulled out if the business fails to thrive.
• D)None of these is correct.

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Definitions:

Equilibrium World Price

The price of an internationally traded product that equates the quantity of the product demanded by importers with the quantity of the product supplied by exporters; the price determined at the intersection of the export supply curve and the import demand curve.

Exports Supplied

Goods or services provided by one country to another in exchange for payment or trade.

Imports Demanded

The total quantity of goods and services that consumers in a country wish to purchase from abroad at a given price level.

Import Quotas

Government-imposed limits on the quantity or value of goods that can be imported into a country.