Brendon is willing to pay $3,000 for a PlayStation. If the market price of the PlayStation is $2,000 . then:
a. Brendon will not buy the PlayStation because the marginal utility derived from it is very low
b. Brendon will not buy the PlayStation because it is an illegal transaction.
c. Brendon will buy the PlayStation because the price he is willing to pay is more than the market price.
d. Brendon will buy the PlayStation because his total utility will increase.
c
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A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. Initially the lake is owned by no one
Keeping in mind the Coase theorem, suppose transactions costs are low and the fishing club is given ownership of the lake. Compared to the situation with no property rights, the quantity of chemicals produced A) will decrease. B) will stay the same. C) will increase. D) changes, but the direction of the change is ambiguous.
An explicit cost is
A) a cost specifically related to government rules and regulations. B) a cost unique to corporations. C) a nonmonetary opportunity cost. D) a cost that involves spending money.
According to the Phillips Curve, which of the following may have taken place if both the unemployment rate and inflation have risen?
A) a negative supply shock B) an increase in expected inflation C) a severe recession D) a negative demand shock
The demand for borrowed funds is a derived demand.
Answer the following statement true (T) or false (F)