If you were in the middle of the desert, came upon a lemonade stand, and paid $20 for a glass of lemonade,
A. you would definitely be overpaying.
B. you would have gotten at least $20 of utility from the lemonade.
C. there is no way to determine whether or not you overpaid.
B. you would have gotten at least $20 of utility from the lemonade.
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A perfectly competitive firm has
a. A perfectly elastic demand for its products b. A perfectly inelastic demand for its products c. A downward sloping demand for its products d. None of the above
To reduce inflation, the federal reserve could
a) expand money supply in order to raise interest rates, which increases investment b) expand money supply in order to lower interest rates, which increases investment c) contract money supply in order to lower interest rates, which increases investment d) contract money supply in order to raise interest rates, which decreases investment e) buy bonds and increase discount rate to encourage borrowing
One of the drawbacks of cost-benefit analysis is that it _____
a. attempts to add up both the costs and the benefits b. is not compatible with utilitarianism c. cannot adjust for spending at different points in time d. focuses on total costs and benefits
Unemployment benefits tend to be higher in Europe and are offered for longer periods than in the United States
a. True b. False