Dale just won tickets to see a NASCAR race. His coworker offers to pay him $200 for them, but Dale decides to use them, even though he would not pay $200 for them himself. Dale's willingness to consume $200 worth of tickets that he doesn't value at $200 is attributed to:
A. his refusal to ignore the sunk cost of the tickets.
B. the high fungibility of money.
C. the explicit cost of ownership.
D. None of these is correct.
Answer: D
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Refer to Figure 5-6. What is the economically efficient output level?
A) Q1 + Q2 B) Q2 C) Q2 - Q1 D) Q1
Everything else held constant, a decrease in planned investment expenditure ________ aggregate ________
A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply
A price index in years beyond the base year:
A. is never 100. B. can be less than, greater than, or equal to 100. C. is always less than 100. D. is always greater than 100.
Which of the following policies could the Fed use to lower the interest rate?
A. a tax cut B. selling government securities C. raising the discount rate D. reducing the required reserve ratio