Sitting through a terrible movie till the end because you already bought the ticket is an example of:
A. making a decision at the margin.
B. sunk cost fallacy
C. negative utility endorsement.
D. rational behavior.
Answer: B
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Economists use different definitions of money because
A) deposits can be domestic or international. B) deposits may be held at banks or savings and loans. C) it is not always clear which assets are used primarily as money. D) there are differences in the frequency with which depositors use their accounts.
In a perfectly competitive market, which two conditions must be met to achieve long-run equilibrium?
a. Productive efficiency and allocative efficiency b. Allocative efficiency and profit maximization c. Productive efficiency and low average costs d. Zero economic profits and zero accounting profits
Microsoft's government-granted exclusive right to make and sell the Windows operating system is called a
Which of the following both reduce net exports?
a. exports rise, imports rise b. exports rise, imports fall c. exports fall, imports rise d. exports fall, imports fall