You have paid all expenses to travel to your favorite beach for a vacation. You made these payments early in order to receive a discount and all payments are nonrefundable. Unfortunately, a hurricane is likely to crash into the coast during your vacation dates. What should not be considered as you make a decision to take your trip or not?
A. The money that has already been spent on the trip
B. The best alternative use of your time if you do not take the trip
C. The additional costs you didn't anticipate while on the trip.
D. The satisfaction you are likely to receive at the beach during a hurricane
Answer: A
You might also like to view...
Unemployment or underemployment of labor might explain why an economy would be operating inside its production possibilities curve (PPC)
a. True b. False Indicate whether the statement is true or false
Why do people hold money? Explain the reasons.
What will be an ideal response?
If the CPI is 230 in year 1 and 249 in year 2, what is the approximate percentage change in prices between the two years?
A) 7.6 percent B) 8.3 percent C) 15.7 percent D) 11.4 percent E) 6.0 percent
Refer to the information provided in Figure 6.15 below to answer the question that follows.
Figure 6.15Refer to Figure 6.15. Why is Jason not maximizing his utility at point C?
A. He is not spending his entire budget. B. His marginal utility per dollar spent on the last sandwich is less than his marginal utility per dollar spent on his last hot dog. C. His marginal utility per dollar spent on the last sandwich is greater than his marginal utility per dollar spent on his last hot dog. D. He is maximizing his utility at point C.