Why do used goods of different qualities often sell for the same price, while used goods of different sizes sell for different prices?
What will be an ideal response?
It is easier to determine the size of a good than it is to determine the good's quality. If size is a product attribute then it can easily be incorporated into the price of the good since both buyer and seller can agree on the size.
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M1 does not include
A) MMMFs. B) travelers' checks. C) currency. D) transaction accounts.
A local restaurant offers an "all you can eat" Sunday brunch for $12 . Susan eats four servings, but leaves half of a fifth helping uneaten. Why?
a. Her marginal value of a serving of brunch has fallen below $12. b. Her marginal value of a serving has fallen below $2.36 ($12 divided by 5 servings). c. Her marginal value of food has fallen to zero. d. The total value she places on brunch today exactly equals $12.
An economy has two workers, Jen and Rich. Everyday they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one radio?
A. 1/6 TV B. 4 TVs C. 1/3 TV D. 1/12 TV
When the federal government is running a budget deficit:
A. government tax revenues exceed government expenditures. B. government expenditures exceed government tax revenues. C. the economy must be in an economic recession. D. the size of the national debt will decline.