Refer to Figure 18.1. The opportunity cost of hang gliders in the United States is
A) 1/4 of a bicycle. B) 1/3 of a bicycle. C) 3 bicycles. D) 4 bicycles.
B
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Three business people meet for lunch at an Indian restaurant. They decide that each person will order an item off the menu, and they will share all dishes. They will split the cost of the final bill evenly among each of the people at the table. When the food is delivered to the table, each person faces incentives similar to the
a. consumption of a common resource good. b. production of a public good. c. consumption of a club good. d. production of a private good.
You could borrow $2,000 today from Bank A and repay the loan, with interest, by paying Bank A $2,154 one year from today. Or, you could borrow X dollars today from Bank B and repay the loan, with interest, by paying Bank B $2,477.10 one year from today. In order for the same interest rate to apply to the two loans, X =
a. $2,300.00. b. $2,450.00. c. $2,500.00. d. $2,525.50.
Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its product must buy and make available its new sales product. This arrangement is an example of:
A. price-fixing. B. an interlocking directive. C. a tying contract. D. price discrimination.
Which of the following is an explanation for why the AD curve slopes downward?
A. The interest rate effect. B. The laissez faire effect. C. The cost effect. D. The profit effect.