Christopher just won tickets to see an NFL football game. His coworker offers to pay him $300 for them, but Christopher decides to use them, even though he would never pay $300 for them himself. Christopher's willingness to consume $300 worth of tickets that he doesn't value at $300 is attributed to:
A. the high transactions costs involved in selling the tickets.
B. the implicit cost of ownership.
C. his refusal to ignore the sunk cost of the tickets.
D. None of these is correct.
B. the implicit cost of ownership.
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A critical assumption is one
a. that affects a model in important ways b. that is understood only by economists c. that makes a model simpler without affecting any of its important conclusions d. with negative implications for a process or outcome e. that is critically unreasonable
Given a fixed amount of time, a decision to supply labor or not is simultaneously a decision to
a. demand goods and services or not. b. demand leisure or not. c. supply capital and land or not. d. supply leisure or not.
Which of the following is a difference between M1 and M2? a. M1 includes the most liquid assets, while the assets included in M2 are comparatively less liquid
b. M2 includes the most liquid assets, while the assets included in M1 are comparatively less liquid. c. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money cannot be withdrawn with personal checks. d. M2 includes bank accounts from which money can be withdrawn with personal checks, while M1 includes bank accounts from which money can be withdrawn with debit cards.
Which of the following will tend to result in the least variation in the expected real rate of return from the ownership of stocks?
a. ownership of a single stock for a short period of time b. ownership of a single stock over a lengthy period of time c. ownership of stocks from a specific sector (for example, the automobile industry) over a lengthy period of time d. ownership of a diverse set of stocks (the Standard & Poor's 500, for example) over a lengthy period of time