Maggie is trying to convince her friend Hannah to spend the morning at the beach instead of studying economics. Maggie’s argument is that the beach is free so will not cost Hannah anything to go. Maggie even volunteers to drive. Maggie’s argument
a. is correct; it is free to go to the beach.
b. is forgetting Hannah’s opportunity cost of not being able to study.
c. assumes Hannah has to eat at home or the beach so it will not cost Hannah additional money.
d. is forgetting sunk costs.
b. is forgetting Hannah’s opportunity cost of not being able to study.
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The absence of the Southern economy's ability to earn foreign exchange and its markets severely impacted all non-local trade in the U.S. after the Civil War
Indicate whether the statement is true or false
Which of the following would cause an increase in demand for golf balls?
a. a decrease in the price of golf balls b. an increase in the price of green fees c. an expectation by buyers that their incomes will increase in the very near future d. a change in consumer tastes away from golf and toward tennis
As the number of firms in an oligopoly increases, the
a. price approaches marginal cost, and the quantity approaches the socially efficient level. b. price and quantity approach the monopoly levels. c. price effect exceeds the output effect. d. individual firms' profits increase.
Fundamental analysis shows that stock in "Night and Day" fitness centers has a price below its present value
a. This stock is undervalued; you should consider adding it to your portfolio. b. This stock is undervalued; you shouldn't consider adding it to your portfolio. c. This stock is overvalued; you should consider adding it to your portfolio. d. This stock is overvalued; you shouldn't consider adding it to your portfolio.