Economists believe that people who sit through bad music concerts likely do so because:
A. they do not ignore the sunk cost involved.
B. they don't accurately consider what else they could be doing with their time.
C. they undervalue the opportunity cost of their time.
D. All of these are true.
Answer: D
You might also like to view...
Spending by businesses on things such as machines and buildings which can be used to produce goods and services in the future is
A) investment. B) savings. C) consumption. D) consumption goods.
Which school of thought believes that real GDP always equals potential GDP?
A) only classical B) only Keynesian C) Monetarist D) both Keynesian and classical
The natural rate of unemployment is: a. equal to the seasonal unemployment
b. usually equal to 3 percent. c. the unemployment rate when none of the work force is unemployed for more than six weeks. d. the unemployment rate at which the economy is producing its potential GDP. e. defined by the government.
The classical model does a poor job of explaining the __________ because it assumes that the __________ always clears
a. long run; labor market. b. long run; financial market. c. short run; labor market. d. short run; financial market. e. short run; housing market.