Luke won tickets to see a rock music concert. Even though Luke is a rhythm and blues fan, he goes to the concert anyway. Twenty minutes later, Luke decides he hates the music and the screaming fans, and he walks out an hour before the concert is scheduled to end. Luke's behavior demonstrates what economic concept?
A. Rational behavior
B. The fungibility of money
C. Irrational behavior
D. None of these explain Luke's behavior.
Answer: A
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When the government prohibits certain kinds of market behavior such as monopoly and monopolistic practices it generally does so through
A) regulatory agencies such as the Interstate Commerce Commission or the Federal Communications Commission. B) antitrust law. C) the police powers of the states. D) use of the capture theory of regulation.
Ray, a marketer at a global firm, monitors the exchange rate of countries in which the firm sells its products. Ray is most likely concerned about changes in ________.
A) operating expenses B) exporting policies C) product demand D) quality control
Economies of scale will lead to only one firm in the industry because
A) by increasing output a firm is able to lower the cost per unit and charge lower prices driving smaller firms out of business. B) one firm has an average cost curve, which has shifted below the average cost curves of its competitors. C) there are governmental entry restrictions. D) of government licensing.
The main difference between paper money and coins as forms of money is that
A. paper money issued by the Federal Reserve Board is backed by gold while coins are not. B. paper money serves as a unit of account while coins do not. C. the metal in coins is more durable than paper. D. the metallic content of coins makes them more acceptable as money.