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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When tastes are risk averse, an individual will always choose less risk over more risk.
Answer the following statement true (T) or false (F)
A representative unit that measures the want-satisfying power of a good is
A) a margin. B) purchasing power. C) income. D) a util.
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
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