A Decision Maker Can Always Make the Best Choice By

question 43

Multiple Choice

A decision maker can always make the best choice by:

• A) including sunk costs as part of marginal costs.
• B) including sunk costs as part of total costs.
• C) ignoring sunk costs.
• D) subtracting sunk costs from total benefits.

---

Definitions:

Monetarist

An economic theory that emphasizes the role of governments in controlling the amount of money in circulation as the primary method for ensuring economic stability and growth.

Money Supply

The total amount of money available in an economy, including cash, coins, and balances held in checking and savings accounts.

Classical Economists

Economists from the late 18th and early 19th centuries who focused on the role of free markets in promoting economic growth and wealth distribution.

Fiscal Policy

Fiscal policy involves the use of government spending and tax policies to influence economic conditions, including aggregate demand, employment, and inflation.