Harry's employer offers a "Holiday Account," which means they will take $50 a month out of Harry's paycheck and deposit it into this account throughout the year. In December, they give Harry the money in the account to spend during the holidays. Harry regularly carries about $200 of credit card debt each month. Harry's decision to set aside some of his money in this account is an example of:
A. recognizing that money is fungible.
B. ignoring the fungibility of money.
C. needing to categorize expenditures to make rational decisions about money.
D. being rational.
Answer: B
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Optimal decisions are made based upon the concept of opportunity cost.
Answer the following statement true (T) or false (F)
It should not be surprising if the public sector fails to pay for the right amount or right kinds of basic research because
a. basic research is not a public good. b. the benefits of basic research are hard to measure. c. members of Congress usually have little expertise in science. d. Both b and c are correct.
A diversified portfolio is comprised of
A) a broad range of various types of assets. B) government bonds issued by federal, state and local governments. C) corporate stocks of several companies in the same industry. D) a diverse set of corporate bonds.
Consider a two-way network with 1,000 users. Adding one additional user to such a network benefits all users by adding:
A. 999,000 potential connections to the network. B. 999 potential connections to the network. C. 1,000 potential connections to the network. D. 2,000 potential connections to the network.