Multiple Choice
Tony notes that an electronics store is offering a flat $20 off all prices in the store.Tony reasons that,if he wants to buy something with a price of $50,it is a good offer,but if he wants to buy something with a price of $500,it is not a good offer.This is an example of
A) inconsistent reasoning;saving $20 is saving $20.
B) the proper application of the cost-benefit principle.
C) rational choice because,in the first case,he saves 40% and,in the second case,he saves 4%.
D) "marginal cost equals marginal benefit" thinking.
E) opportunity costs.
Correct Answer:

Verified
Correct Answer:
Verified
Q63: The cost-benefit principle states that a consumer
Q64: If you make an interest-free loan of
Q65: The reason sunk costs are irrelevant to
Q66: Jackson just took out a $1,000 loan
Q67: Economists argue that<br>A) there is an opportunity
Q69: Sharon,a marketing major,has her first economics test
Q70: Which of the following is a microeconomic
Q71: Which of the following is a macroeconomic
Q72: The following table shows the total benefit
Q73: "The Canadian government should not interfere with