The use of expensive cars and yachts to impress others rather than just as transportation is an example of what economists call:
A. bounded rationality.
B. conspicuous consumption.
C. rules of thumb.
D. focal point equilibrium.
Answer: B
Economics
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A negative externality is
A) a cost realized by the producer of a good or service. B) anything that is external or not relevant to the production of a good or service. C) a cost paid for by the consumer of a good or service. D) a by-product of an activity that hurts someone who is not involved in that activity.
Economics
In the quantity equation MV = PT, V is the:
A. income velocity of money. B. transactions velocity of money. C. inflation rate. D. value of the money supply.
Economics