A Cost That Has Already Been Incurred and Cannot Be

question 69

Multiple Choice

A cost that has already been incurred and cannot be changed is called a(n) :

• A)Opportunity cost.
• B)Out-of-pocket cost.
• C)Joint cost.
• D)Sunk cost.

---

Definitions:

Budget Constraints

The limitations on the spending behavior of consumers, based on their income and the prices of goods and services.

Indifference Curves

Representations on a graph showing combinations of goods or services between which a consumer is indifferent, meaning they have no preference for one combination over another.

Elasticity

Elasticity refers to the degree to which demand or supply reacts to changes in price or other factors.

Indifference Curve Analysis

A graphical representation used in microeconomics to show combinations of two goods that provide the consumer with equal levels of utility.