Maria decides to buy a dress from Lisa; they agree on a price of $20. Which of the following best describes who gains and who loses from the transaction?
a. Both Maria and Lisa expect to gain from this transaction.
b. If Lisa gains from the transaction, Maria must lose an equal amount.
c. If the dress originally costs more than $20, Maria gains and Lisa loses.
d. If the dress originally costs less than $20, Lisa gains and Maria loses
a. Both Maria and Lisa expect to gain from this transaction.
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Herbert Simon has concluded that decision making in industry is often best described as
A. optimizing behavior. B. profit maximizing. C. satisficing. D. saturating.
A change in consumer taste will prompt a change in _____.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not consistent with a minimum wage that is set above the equilibrium wage?
A. Some workers will end up with higher wages. B. Some workers will end up unemployed. C. A labor surplus will result. D. There will be no unemployment.
Milton Friedman said that the short-term trade-off of the Phillips curve ______.
a. is less valid than long-tern trade-offs b. is a result of expected inflation c. does not exist d. comes from unanticipated inflation