Matt has $2000 saved for a trip at Spring Break. Over Christmas break he decides to spend $400 of it on gifts instead of putting the gifts on his credit card, thus avoiding interest charges. He gradually replaces it in his savings account over the next two months. An economist would say this behavior is:
A. rational.
B. irrational.
C. utility minimizing.
D. not observable.
A. rational.
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Suppose there are only 2 nations, Atlantis and Pacifica, and only two goods, surfboards and kayaks. If Atlantis produces only surfboards, it can make 50 per day. If Atlantis produces only kayaks, it can make 75 per day
If Pacifica produces only surfboards, it can make 75 per day. If Pacifica produces only kayaks, it can make 75 per day. After trade begins, ________ will specialize in the production of surfboards and ________ will specialize in the production of kayaks. A) Atlantis; Pacifica B) Pacifica; Atlantis C) Atlantis; Atlantis D) Pacifica; Pacifica
How do banks potentially make economic downturns more severe and how do economic downturns contribute to the increased failure of banks?
What will be an ideal response?
If a restaurant guest said, "Every bite, including the last bite, tasted as good as the first," then the marginal utility for her
A) is decreasing. B) is increasing. C) is constant. D) is positive.
If Belgium has exports of 50 billion euros and imports of 40 billion euros, then it is running a trade deficit.
Answer the following statement true (T) or false (F)