Opportunity cost:
a. Always refers to the dollar price paid for a good
b. Always equals the best alternative value of the time spent in going to a concert or sporting event.
c. Of any good is zero for any good that is given away free, if you wait in a line to get it.
d. Increases when the best foregone alternative becomes more valuable.
d
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Recency bias refers to a psychological bias whereby people believe that recent past trends and patterns will continue in the future
How would recency bias explain why investors chase returns? Does return-chasing lead investors to realize a higher rate of return on investments?
Refer to Table 2-2. Assume Billie's Bedroom Shop only produces pillows and blankets. A combination of 9 pillows and 21 blankets would appear
A) along Billie's production possibilities frontier. B) inside Billie's production possibilities frontier. C) outside Billie's production possibilities frontier. D) at the vertical intercept of Billie's production possibilities frontier.