Rick finds a great Internet deal on an all-inclusive vacation rental in the Tropics for $1200, and immediately places a $1000 nonrefundable deposit on it. He later learns that the dates he planned to go are right in the middle of hurricane season, and it is likely to be miserable and potentially dangerous weather the entire time. Rick decides he cannot waste the $1000 and takes the trip anyway. While sitting in the rain, miserable, Rick realizes he should have:
A. hired a lawyer for $1000 to sue the travel agency.
B. ignored his sunk cost of $1000, and skipped the trip.
C. ignored his sunk cost of $1200 and skipped the trip.
D. hired a lawyer for $1000 to go to court and try to get his deposit back.
Answer: B
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If U.S. official reserves increase, the
A) current account is positive. B) balance of payments increases. C) official settlements account balance is negative. D) current account increases. E) official settlements account balance is positive.
Productive efficiency occurs in markets when
a. goods are produced at the lowest possible average total cost b. goods are produced at the lowest average variable cost c. goods are produced at the lowest marginal cost d. goods are produced at the lowest average fixed cost e. the economy is producing the maximum quantity of goods and services it can
The type of security that is protected against inflation are:
A. Treasury bonds. B. Treasury notes. C. TIPS. D. Treasury bills.
Which of the following is a recommended strategy to increase productivity of the private sector?
a. A reduction in government subsidies to producers b. An increase in business taxes c. An increase in government investment in risky projects d. An increase in the money supply e. An increase in subsidy on goods and services