Joe walks into Best Buy prepared to spend no more than $500 cash on a new computer, but the price turns out to be $600. Joe is told if he finances it on a Best Buy credit card, it will cost $600, but he will get a $25 gift card free with the computer. Joe opts to open the credit card and puts the full $600 on the account. According to economic theory, Joe's decision is:
A. irrational.
B. rational.
C. budget-conscious.
D. optimal.
A. irrational.
You might also like to view...
For a monopoly, a negative marginal revenue implies:
A. the price effect is larger than the quantity effect. B. total revenues are increasing. C. that the demand is price elastic. D. the quantity effect is larger than the price effect.
Suppose that the wage for drive-thru clerks is $7 an hour at Burger King and $6.50 at McDonald's. The jobs are alike in all other respects. We would expect
a. an increase in the supply of and demand for drive-thru clerks at Burger King b. an increase in the supply and a decrease in the demand for drive-thru clerks at Burger King c. a decrease in the supply of drive-thru clerks at Burger King but no change in demand d. an increase in the supply of drive-thru clerks at Burger King but no change in demand e. a decrease in the supply of and demand for drive-thru clerks at Burger King
Economists often find it worthwhile to make assumptions that do not necessarily describe the real world
a. True b. False Indicate whether the statement is true or false
Consumption expenditure decreases when ________ decreases.
A. The interest rate B. The price level C. Disposable income D. Saving