Why are prices for groceries and household items typically higher at a 24-hour convenience store compared to stores open from 6 am to 11 pm?
A) Shoppers' options are generally fewer in the middle of the night.
B) The elasticity of demand of the middle-of-the-night shopper is typically higher than the mid-day shopper's elasticity.
C) The owners of the 24-hour stores are typically more selfish than the others.
D) The owners of the 24-hour stores are more interested in maximizing net revenue compared to the others.
A
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An economic principle that explains why countries produce different goods and services is
A) trade as a percentage of GDP. B) absolute advantage. C) NAFTA. D) comparative advantage.
The economy is in an expansion when it is
A) moving from a peak to a trough. B) moving from a trough to a peak. C) at its peak. D) at its trough.
Which of the following best defines the real interest rate (r)?
A) the amount of goods we must give up next year in order to consume more goods today B) the amount of dollars we must give up next year in order to consume more goods today C) the amount of dollars we must give up next year in order to have more dollars today D) the amount of dollars we must give up today in order to have more dollars next year E) the amount of dollars we must give up today in order to consume more goods today
Related to the Economics in Practice on p. 437: If the effects of pollution on society as a measure of welfare were included in GDP calculations, the measured level of GDP would most likely
A. decrease. B. become negative. C. increase. D. not change.