Answer the following questions true (T) or false (F)
1. A common mistake made by consumers is the failure to take into account the sunk costs of their actions.
2. The endowment effect is the tendency of people to be unwilling to sell a good they already own even if they are offered a price greater than they would be willing to pay to buy the good if they did not already own it.
3. Behavioral economics is the study of situations in which people make rational choices.
1. TRUE
2. TRUE
3. FALSE
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A firm's fixed cost divided by its level of output is equal to its:
A. variable cost. B. start-up cost. C. explicit cost. D. average fixed cost.
Equity and debt instruments with maturities greater than one year are called ________ market instruments
A) capital B) money C) federal D) benchmark
A mobile phone is a
a. private good. b. club good. c. common resource. d. public good.
If an asset cannot be sold quickly for cash without much loss of value, it is called:
A. illiquid. B. durable. C. liquid. D. fixed.