When making a purchase, it is least costly to
a. pay cash.
b. put it on a credit card and pay off the balance plus interest in one year.
c. put it on a credit card and pay off the balance at the end of the month before interest accrues.
d. it doesn't matter because all three have the same present value.
c. put it on a credit card and pay off the balance at the end of the month before interest accrues.
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If the consumption of a good by one person reduces its consumption by others, then the good is
A. nonrivalrous in consumption. B. rivalrous in consumption. C. nonexcludable. D. excludable. E. b and d
According to the text, on a kibbutz in Israel
a. farmers produce oranges no matter what the price b. members are not profit maximizers c. there is no link between an individual's effort and reward d. universal equality is seen as unrealistic e. high-tech manufacturing is not feasible
Figure 11-2
In Figure 11-2, at what price would the monopolist maximize profit?
A. E B. F C. G D. H
An example of a market failure is when:
A. a firm selling a product faces competition from many other sellers. B. a good is priced too high for poor families to afford. C. the distribution of surplus is unfair. D. one person's consumption of a good imposes costs on others