Behavioral economists think that the less obvious a person's opportunity cost is:
A. the harder it is to value accurately.
B. the more likely they will undervalue it.
C. the less likely they are to correctly value it.
D. All of these are true.
D. All of these are true.
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Foreign exchange rate stability is important because a decline in the value of the domestic currency will ________ the inflation rate, and an increase in the value of the domestic currency makes domestic industries ________ competitive with competing foreign industries.
A) increase; more B) increase; less C) decrease; more D) decrease; less
As more and more firms have acquired fax machines, the fax machine has become a standard means of business communication. The increase in demand for fax machines for business communication:
A) is an example of the snob effect. B) proves that the fax machine is an inferior good. C) proves that the fax machine is a luxury good. D) is an example of a positive network externality. E) is an example of a negative network externality.
Maryann and Don want to open their own deli. To do so, Maryann must give up her job, at which she earns $20,000 per year, and Don must give up his part-time job, at which he earns $10,000 per year. They must liquidate their money market fund, which earns $1,000 interest annually. The rent on the building is $10,000 per year, and expenses for such necessities as utilities, corned beef, and pickles
are $35,000 annually. What is the explicit cost per year of operating the deli? a. $10,000 b. $35,000 c. $45,000 d. $31,000 e. $76,000
Figure 4-14
In , which of the following is true at the price ceiling, P?
a.
The excess quantity supplied equals 300 gallons.
b.
The excess quantity demanded equals 300 gallons.
c.
The excess quantity supplied equals 500 gallons.
d.
The excess quantity demanded equals 800 gallons.
e.
Sales will be equal to 800 gallons.