Which of the following statements is true?
A) Marginal analysis is a key component in the process of optimization in levels.
B) Only direct costs are considered when the net benefits of the alternatives are calculated.
C) In both the techniques of optimization, all costs have to be converted to the same unit of measurement.
D) Optimization in levels calculates the change in net benefits when a person switches from one alternative to another.
C
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The key difference between the primary and secondary bond markets is that __________ bonds are traded on the primary market, while __________ bonds are traded on the secondary market
a. newly issued; previously issued b. government; corporate c. more valuable; less valuable d. low risk; high risk e. high yield; low yield
Suppose three firms form a cartel and agree to charge a specific price for their output. Each individual firm has an incentive to maintain the agreement because the firm's individual profits will be the greatest under the cartel arrangement
a. True b. False Indicate whether the statement is true or false
Linnea applied for a new job because it pays more than her current job. According to economists, Linnea is most likely motivated by ______.
a. self-interest b. greed c. selfishness d. competitiveness
Jane wants to buy a beautiful doll as a gift for her sister's birthday. She knows that the same product is offered in different shops with prices of $120, $100, and $80 with odds of one-third of finding each price. She just stopped at a shop and knows that the price is $100. Suppose that there is a search cost of $5 for each search. Should she search one more time?
A. She should toss a coin. B. Yes C. No D. Insufficient information to determine.