If a customer buys an airline ticket based only on the price of the ticket, then the airline ticket is a(n)
A) experience good.
B) credence good.
C) inferior good.
D) search good.
Answer: D
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Luke has lent his friend Mitch some money. However he underestimated the rate of inflation when they agreed to a repayment and interest schedule. Mitch will benefit from the inflation
a. True b. False Indicate whether the statement is true or false
The long-run average total cost curve:
A. is based on the assumption that all resources are variable. B. will rise if economies of scale are incurred. C. will rise if diminishing returns are encountered. D. will fall if diminishing returns are encountered.
Jackie notices everyone wearing Converse sneakers on the first day of school. Ever the fashionista, this will likely affect:
A. the prices of related goods, since other shoes will be less popular and cost less now. B. Jackie's preferences for shoes, since she feels as though she needs them now. C. Jackie's expectations of future prices, since the price of Converse will likely go up because they're getting so popular. D. Jackie's income, as she now needs to buy Converse and will have less to spend on other goods.
Describe the Bretton Woods exchange rate system and explain how it fell apart.
What will be an ideal response?