Consider Figure 12.3. Becky chooses to charge a low price:
A. only if David chooses a low price.
B. only if David chooses a high price.
C. regardless of whether David chooses a high or low price.
D. in order to induce David to choose a high price.
Answer: C
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Which of the following statements is NOT a reason that the cost of a college education is greater for the low-productivity group than for the high-productivity group?
A) The wages they give up by going to college instead of working will tend to be higher for them. B) They may have to pay for tutoring services or other extra help to accomplish the same educational goal. C) They may have to take remedial classes, which would increase the length of time it takes to accomplish the same goal. D) Even if they take no remedial classes, they may have to spend more time studying for each class, and the value of their leisure time needs to be considered in the calculation. E) Based on previous signaling, such as from their high school grades or SATs, they may receive less merit-based financial assistance, and thus be under a greater financial strain during their college years.
Which of the following best illustrates the double coincidence of wants? a. Both Tom and Jerry would like to purchase the same good
b. Tom has something he's willing to trade with Jerry; Jerry has something he's not willing to trade with Tom. c. Tom and Jerry have very similar tastes; hence, Tom's wants coincide with Jerry's. d. Tom has something he's willing to trade with Jerry, who wants it; Jerry has something he's willing to trade with Tom, who wants it. e. Tom has something Jerry wants; Jerry has nothing Tom wants.
Suzie Homemaker works in her home as a full-time caretaker and homemaker. Officially, she is: a. employed
b. unemployed. c. not in the labor force. d. a discouraged worker.
All other factors equal, as nominal interest rates increase, checking account balances should:
A. remain constant. B. be converted to cash. C. decrease. D. increase.