People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience that is involved in doing that is referred to as
a. inflation-induced tax distortion.
b. relative-price-variability cost.
c. shoeleather cost.
d. menu cost.
c
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Concentration of resources on higher rather than basic education in developing countries tends to lead to
(a) greater inequality. (b) lower fertility. (c) less international migration. (d) more job creation.
People make mistakes in allocating their time
a. only when leisure time is an inferior good b. because expectations are not always fulfilled c. more often when the cost of making a mistake is high d. only when economists remove the assumption that individuals are rational e. because information is free and readily available
Border enforcement if effective would raise the number of illegal immigrants into the United States
a. True b. False Indicate whether the statement is true or false
The stock market crash of 1929 may have been avoided if:
A. investors had acted rationally. B. investors had acted irrationally. C. large companies had been more objective in their decision making. D. large companies had been more emotional in their decision making.