"Committed" and "Sunk" Costs Are

question 96

Multiple Choice

"Committed" and "Sunk" costs are:

• A) Generally not fixed.
• B) Generally small in amount.
• C) The result of prior bad decisions.
• D) Not relevant for decision-making.
• E) Recoverable in trade.

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Definitions:

Nominal Wages

See Money Wages.

Economic Rent

The surplus income received by a factor of production (land, labor, or capital) due to its limited supply, over and above its opportunity cost.

Pro Tennis Tour

A circuit of internationally recognized tennis tournaments in which professional tennis players compete for titles and prize money.

Labor Supply Curve

Depicts the relationship between the wage rate and the quantity of labor workers are willing to supply; generally upward sloping, indicating more labor supplied as wages increase.