Before digital photography, most film processing companies had a policy of printing every picture on a roll of film and allowing customers to request a refund for pictures that were not clearly developed. The companies did this knowing that most
customers did not ask for refunds. This was an example of consumers
A) failing to ignore sunk costs.
B) being overly optimistic about their future behavior.
C) not taking nonmonetary opportunity costs into account.
D) not making themselves aware of the policy regarding refunds.
Answer: C
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MSB equals
A) MC + the marginal external cost. B) MC + the marginal external benefit. C) MB + the marginal external cost. D) MB + the marginal external benefit. E) MB + MC.
Which of the following statements is NOT true about inflation?
A) Inflation is a sustained increase in the average prices of goods in the economy. B) During an inflationary period, the prices of some goods will increase while the price of some goods will decrease. C) When there is inflation, the purchasing power of a dollar decreases. D) During an inflationary period, the prices of all goods will increase.
The other name for the National Labor Relations Act of 1935 is
A) the Wagner Act. B) the Taft-Hartley Act. C) the Clayton Act. D) the Wheeler-Lea Act.
Josh went to watch a movie, but decided to leave halfway and went for a walk to the nearby park. Which of the following is most likely to be true in this case? a. The price of the movie ticket represents a sunk cost
b. The opportunity cost of going for the walk is higher than the opportunity cost of watching the movie. c. Josh's marginal utility from walking increases as he walks more. d. Josh's marginal utility from watching another movie is the same as his marginal utility from walking another mile.