Sunk Costs Are

question 16

Multiple Choice

Sunk costs are:

• A) usually relevant.
• B) costs that will occur in the future.
• C) not relevant.
• D) costs that can be avoided.

---

Definitions:

Monetary System

The set of institutions and mechanisms by which a country manages its currency and money supply, often involving a central bank and various types of money.

Efficient Economy

An economic system in which resources are allocated in the most productive way, maximizing the output of goods and services.

Federal Reserve Notes

The official currency issued by the Federal Reserve System in the United States, commonly known as dollars.

Fiat Money

Money not redeemable for any commodity; its status as money is conferred initially by government decree but eventually by common experience.