A consumer purchases a book by driving across town to a bookstore, standing in line for five minutes to pay the cashier, and then pays $5
The same book is purchased by another consumer who spends 2 minutes placing the order over the internet for $10. The book necessarily cost the first consumer less. Indicate whether the statement is true or false
False. The opportunity cost of driving across town and standing in line may have raised the total cost of the book to the first consumer to more than $10.
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According to Keynes, it is __________ to have __________ holding money
A) possible; capital gains or losses from B) impossible; capital gains and losses from C) possible; a higher opportunity cost of D) impossible; a lower opportunity cost of
If an economy operates on its production possibilities frontier, the natural unemployment rate must be:
a. zero. b. positive. c. negative. d. at 1 percent. e. at 5 percent.
The following equations represent a two-equation model:? y1 = ?10+?1y2 + z1?1 + u1 y2 = ?20+?2y1 + z2?2 + u2 where, y1and y2 are the:
A. ?endogenous variables. B. ?structural error terms. C. ?exogenous variables. D. ?intercepts.
The supply curve for cars will be more elastic the:
A. greater the decline in input prices. B. greater the quantity demanded. C. longer the time interval considered. D. less able producers are to make other goods.