In the early 1990s, before pay at the pump was an option, a gas station decides to force people to pre-pay due to drive-offs. The opportunity cost of this decision may include:
A. the value of the gas that is no longer stolen by people who drove off.
B. not having to look outside for people waving at you to turn on the pump.
C. lost revenue when people under estimate what they think their gas tanks will hold in order to avoid going back into the store to get change from overpayment.
D. a loss of snack sales because people decide to come into the store to pay for gas before pumping versus after pumping their gas.
C. lost revenue when people under estimate what they think their gas tanks will hold in order to avoid going back into the store to get change from overpayment.
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By Marks buys a one-year German government bond (called a bund) for $400. He receives principal and interest totaling $436 one year later. During the year the CPI rose from 150 to 162
The nominal interest rate on the bond was ________, and the real interest rate was ________. A) 9%; 1% B) 9%; -1% C) 36%; 24% D) 36%; 12%
Which of the following is an unintended side effect of protectionist policies to protect domestic jobs?
a. The consumers are paying higher prices to the protected industry, so they will purchase less product from that industry, and jobs are lost in the protected industry. b. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will lose sales to foreign producers who do not need to pay the higher price. c. The protected product is sold to other firms, who must now pay a higher price for a key input, so those firms will increase sales from foreign producers. d. The consumers are paying higher prices to the protected industry, so they will purchase more products from unprotected industries, and jobs are gained in the unprotected industry.
What happens in the secondary market?
A) secondary inputs like electricity are sold B) a corporate financial manager will raise funds for expansion of the firm C) newly issued claims are sold by the borrowing firm to the initial buyer D) already issued claims are sold from one investor to another
The Great Depression consisted of how many business cycles?
A. 1 B. 2 C. 3 D. 4