Shelly purchases a leather purse for $400. One can infer that:

A. her reservation price was exactly $400.
B. she paid too much.
C. her reservation price was less than $400.
D. her reservation price was at least $400.


Answer: D

Economics

You might also like to view...

Stock prices increase when expected future dividends ________, interest rates ________, and/or the risk premium ________.

A. decrease; decrease; increases B. increase; increase; increases C. increase; increase; decreases D. increase; decrease; decreases

Economics

Refer to the scenario above. After a year, the interest payments by the bank will be ________

A) $10 B) $300 C) $3,000 D) $3,300

Economics

A budget line is a straight line designed to show

A. how income is related to hours worked. B. all combinations of two goods that can be purchased with a given income. C. the way a homemaker should divide money among several commodities. D. that if more money is spent on one good, the breadwinner must work all the harder to maintain a satisfactory level of living. E. preferences for goods and services.

Economics

Refer to Table 2-5. Assume Nadia's Neckware only produces ascots and bowties. A combination of 24 ascots and 12 bowties would appear

A) along Nadia's production possibilities frontier. B) inside Nadia's production possibilities frontier. C) outside Nadia's production possibilities frontier. D) at the horizontal intercept of Nadia's production possibilities frontier.

Economics