Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16. Given that driving to campus to buy the concert ticket was rational for Matt, Matt should:
A. not drive to campus to buy the books because the $5 he would save is only two percent of the cost of the books, and that is much less than the 25 percent he saved on the concert ticket.
B. not drive to campus to buy the books because the cost of gas and his time must certainly be more than the $5 he would save.
C. drive to campus to buy the books because the $5 he would save is more than he saved by driving to campus to buy the concert ticket.
D. drive to campus to buy the books because the books are cheaper at the bookstore than online.
Answer: C
You might also like to view...
If a graph shows a negative relationship between two variables which then becomes a positive relationship, this curve would
A) always be an upward-sloping line. B) have a minimum point. C) have a maximum point. D) always be a downward-sloping line.
In 1999, what percentage of K-12 students attended private schools?
a. Around 6 percent b. Around 9 percent c. Around 11 percent d. Around 14 percent
The simple deposit multiplier equals
A. the ratio of the amount of deposits created by banks to the amount of new reserves B. The formula used to calculate the total increase in checking account deposits from an increase in bank reserves C. The inverse, or reciprocal, of the required reserve ratio D. All of the above
When contractionary fiscal policy leads to
A) less private investment because of higher interest rates, the change in investment is called crowding in by economists. B) more private investment because of lower interest rates, the change in investment is called crowding in by economists. C) less private investment because of lower interest rates, the change in investment is called crowding in by economists. D) less private investment because of higher interest rates, the change in investment is called crowding out by economists.