You spend $20 on a lottery ticket instead of buying groceries. The $20 spent on the lottery ticket represents an ________ and the forgone groceries represent an ________
A) explicit cost; explicit cost
B) implicit cost; explicit cost
C) explicit cost; implicit cost
D) implicit cost; implicit cost
C
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If the Fed tries to lower the unemployment rate so it is lower than the natural unemployment rate, before the expected inflation rate changes, the inflation rate ________ and the unemployment rate ________
A) does not change; falls B) falls; falls C) rises; does not change D) falls; rises E) rises; falls
When tastes are risk averse, an individual will always choose less risk over more risk.
Answer the following statement true (T) or false (F)
In the above figure, as Brendan's income rises his consumption bundle moves from point A to point C. This implies that for Brendan, compact discs are ________ good and haircuts are ________ good
A) a normal; an inferior B) a normal; a normal C) an inferior; an inferior D) an inferior; a normal
A representative unit that measures the want-satisfying power of a good is
A) a margin. B) purchasing power. C) income. D) a util.