Bill attends a local basketball game. The teams are very unbalanced, the play is bad, and the score quickly reaches 36-2. At halftime, Bill realizes he's having no fun, leaves the game, and goes home. Bill's behavior is NOT determined by
A. economic logic.
B. sunk costs.
C. utility maximization.
D. None of these is true.
B. sunk costs.
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Refer to Figure 4-10. With rent control, the quantity supplied is Q1. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get?
A) more than R1 B) R* C) R1 D) R0
When a temporary negative supply shock hits the economy ________
A) the divine coincidence does not always hold B) the divine coincidence holds in the short-run C) the divine coincidence does not hold in the long-run D) all of the above E) none of the above
An increase in aggregate demand caused by any other factor than the price level in an economy will cause _____
a. the aggregate demand curve to shift rightward b. the aggregate demand curve to shift leftward c. an upward movement along the aggregate demand curve d. a downward movement along the aggregate demand curve
When the government levies a tax on a corporation,
a. all the burden of the tax ultimately falls on the corporation's owners. b. the corporation is more like a tax collector than a taxpayer. c. output must increase to compensate for reduced profits. d. less deadweight loss will occur since corporations are entities and not people who respond to incentives.