Assume Joe is only willing to pay $5 for a Ferrari sports car
A) Joe is not considered part of the demand for Ferraris.
B) Joe won't be sold a Ferrari.
C) Joe is not considered rational.
D) Joe's willingness to pay is not indicative of how much he values the Ferrari.
B
You might also like to view...
Given the U.S. price level P, the foreign country price level P*, and the real exchange rate RER in foreign currency per U.S. dollar, the nominal exchange rate E would be given by
A) E = RER × (P/P*). B) E = RER × (P*/P). C) E = (P/P*) / RER. D) E = P × (RER/P*).
If banks' desired reserve ratio increases from 0.10 to 0.15, the public still desires to hold the same amount of currency, and the Fed takes no actions, the money supply will:
A. decrease. B. not change. C. either increase or decrease. D. increase.
Division of labor means that
A. the production process is divided into smaller tasks. B. some employees join labor unions and others do not. C. management and labor are always in conflict. D. the labor market in the United States is geographically segmented.
Myrna borrows $500 at an annually compounded interest rate of 8 percent that she will repay at the end of 10 years. How much will be required to pay off the loan at the end of 10 years?
A. $900. B. $962.85. C. $1,079.46. D. $1,123.21.