Brian is paid monthly and typically takes $500 of his pay in cash to spend throughout the month, and the rest he leaves in an interest-bearing checking account. With the recent inflation, Brian finds it necessary to go to the bank every week, withdrawing $125 each time, so that his money can earn interest for as long as it can before Brian needs to withdraw it. The added hassle of going to the bank more often in response to inflation is called a:
A. tax distortion.
B. transactions cost.
C. shoe-leather cost.
D. menu cost.
Answer: C
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U.S. automobile manufacturers chose not to switch to producing subcompact cars for which of the following reasons?
(a) They did not perceive the U.S. demand for subcompacts as permanent. (b) This switch was not economically feasible in the long run. (c) Government policy prevented them from doing so. (d) All of the above.
Which of the following determines comparable worth of a particular job?
a. Cultural background of the applicants b. Gender of the candidates applying for a job c. Race of the applicants for the job d. Level of formal education required for a job e. National origin of the workers in a factory
A household consists of only related family members like a father, mother, and children and not unrelated members like two students sharing a rented apartment
a. True b. False Indicate whether the statement is true or false
An advertising race among oligopolists may be rational if it
A. is defense advertising. B. raises entry barriers. C. increases cost per unit of sales. D. encourages new entrants.