High-income people will sometimes pay higher prices at convenience stores for goods that are available at discount stores. They do this because
a. they are irrational
b. their opportunity cost of time is low
c. crowded and understaffed discount stores impose higher time costs
d. they like to be seen paying more money
e. they do not mind wasting time
C
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The payment received by suppliers of entrepreneurial skills is called wages
Indicate whether the statement is true or false
The above figure shows Bob's utility function. He currently has $100 of wealth, but there is a 50% chance that it could all be stolen. Bob's expected utility is
A) a. B) b. C) c. D) d.
The primary problem with entitlements, from a budgetary perspective, is that _____
a. expenditures are much harder to control than for non-entitlements b. they add to the uncertainty of the budgetary process because it is difficult to predict how many individuals will be eligible c. it is impossible to control spending on entitlements once created d. a and b e. all of the above
A person has a comparative advantage in producing a good if that person:
a. can produce the good at a lower absolute cost than anyone else. b. can produce the good at a lower opportunity cost than anyone else. c. can do a better job than anyone else. d. spends more money in out-of-pocket expenses than anyone else. e. can produce the good at a higher opportunity cost than anyone else.