Shoe leather costs are
A) the costs in time and effort incurred by people and firms who are trying to minimize their holdings of cash because of inflation.
B) the costs of changing prices, such as printing and mailing catalogues.
C) the costs of the redistribution of wealth between lenders and borrowers.
D) the costs associated with the confusion of prices as signals.
A
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Consumption consists of spending by households on goods and services, with the exception of
a. purchases of intangible services. b. purchases of durable goods. c. purchases of new houses. d. spending on education.
Consider an example of the prisoner's dilemma where 2 firms are making sealed bids on a contract and each firm is allowed to bid either $100 or $180. If both firms bid the same price, the job is shared equally and each firm earns half the value of its bid. Otherwise the lowest bidder wins the contract and receives the full value of its bid (and the other bidder earns zero). The non-cooperative outcome in this situation is
A) both firms bid $90. B) both firms bid $180. C) both firms bid $100. D) one firm bids $100, the other firm bids $180. E) both firms bid $50.
The CPI and GDP deflator
What will be an ideal response?
An organization that brings together the factors of production is called
A. a firm. B. an industry. C. a conglomerate. D. a plant.