Suppose Alyssa is willing to drive across town to save 50 percent on a soccer ball with a list price of $40. If Alyssa is rational, this implies that she should:
A. not be willing to drive across town to save $20 on a shirt with a list price of $60.
B. be willing to drive across town to save 5 percent on a bike with a list price of $400.
C. be willing to drive across town to save 50 percent on a book with a list price of $20.
D. not be willing to drive across town to save 50 percent on a skateboard with a list price of $100.
Answer: B
You might also like to view...
Refer to Scenario 10-1. Based on the information above, what is the level of private saving in the economy?
A) $3 trillion B) $4 trillion C) $5 trillion D) $8 trillion
The investment component of GDP includes
a. residential construction investment. b. inventory investment. c. business fixed investment. d. Both b and c e. All of the above
Virtual Currency Unit 3 (VCU3) poses a __________ risk to nations in which is it used because ___________________________
a. Low; it can be spent only in virtual worlds. b. Low; when converted into legal tender, it has no effect on a nation's M2 money supply or monetary base. c. Low; it does not have the potential to raise a nation's price level or threaten the nation's payment system. d. All of the above are true.
The provision of public goods gives rise to
a. positive externalities, as does the use of common resources. b. positive externalities, whereas the use of common resources gives rise to negative externalities. c. negative externalities, whereas the use of common resources gives rise to positive externalities. d. negative externalities, as does the use of common resources.