The law of supply and the law of demand both rely on the concept of opportunity cost.
Answer the following statement true (T) or false (F)
True
Consumers would never pay more for a product than the cost value of the alternative uses of their money. Sellers will not be willing and able to sell a product for less than the value of their best forgone alternative. Both the law of supply and the law of demand rely on the concept of opportunity costs.
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A strategic pre-commitment occurs when a firm:
A. commits to some actions before rivals take theirs, with the aim of increasing its future competitive profit. B. commits to some actions after rivals take theirs, with the aim of increasing its future competitive profit. C. commits to some actions before rivals take theirs purely by accident. D. commits to some actions after rivals take theirs because there are no other options.
In Figure 4-5 above, at what income would the interest rate that brings about money market equilibrium cause unwanted inventories of commodities to accumulate?
A) YA B) YB C) YE D) YC
When buying a car from a commission salesman you improve your bargaining position by
a. shopping when the new model year cars have just arrived b. shopping when the showroom is empty of customers c. shopping when the car lot has few cars left unsold d. shopping toward the beginning of the month
Which of the following does not describe the World Bank?
a. an economic development institution b. affiliated with the United Nations c. offers low-fee checking accounts to anyone in the world d. estimates output per capita figures e. uses output per capital figures to classify economies