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C. greenhouse gas emissions are a transboundary problem.
D. All of the above
5. The net benefit of a choice is
A. the difference between the benefits and costs of that choice.
B. the difference between the benefits and sunk costs of that choice.
C. the ratio of the benefits and costs of that choice.
D. the ratio of the benefits and sunk costs of that choice.
6. Explicit costs are monetary while implicit costs are not.
B. False 6 7. The university operates a parking lot for staff and students. Maintenance of the ticket
dispensers and the parking lot surface costs around $20,000 per year. The land on which
the parking lot sits could instead be leased for $50,000 per year to a local technology firm
for the construction of research facilities. The land has no other use.
A. The financial cost of the parking lot is $70,000 per year.
B. The explicit cost of the parking lot is $20,000 per year.
C. The cost of the parking lot includes an opportunity cost of $50,000 per year for the
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This document was uploaded on 03/03/2014.
- Spring '14