When shopping for a ticket to see One Direction, her favorite band, in concert, Annie mistakenly purchased a non-refundable ticket to the off-off-off Broadway play "One Dissection," which she has no interest in seeing. Because the ticket cost her $100, Annie decides to think about it:
A. rationally and sits through the play she has the ticket for, which is as awful as she thought it might be.
B. irrationally and skips the play and spends another $100 on the concert ticket.
C. rationally and skips the play and spends another $100 on the concert ticket.
D. None of these is a possible outcome.
Answer: C
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The unemployment rate equals [(the number of people unemployed)/(the population)] × 100
Indicate whether the statement is true or false
In the life-cycle hypothesis, a person who expects to work for R years earning Y dollars per year, and live for a total of L years, will consume ________ per year
A) RY - (L - R)Y B) LRY C) (L - R)Y D) (R/L)Y
According to the text, the net public debt to Gross Domestic Product (GDP) ratio is currently about
A) 10%. B) 25%. C) 60%. D) 120%.
Answer the following statement(s) true (T) or false (F)
1. A price index is calculated by dividing the cost of a market basket in the base year by the cost of the market basked in the current year. 2. The Consumer Price Index (CPI) and GDP deflator often show opposite trends. 3. Unemployment is usually relatively high at the peak of a business cycle. 4. Most business cycles last a similar length of time. 5. Lagging economic indicators follow economic activity.