Damian shares a small food truck with his sister. His share of the expenses is $500 per month. He has decided to get his own, newer food truck which he will not have to share with anyone. His expenses for the newer truck are $1,400 per month. Damian is
as rational as any other person. As an economics major, you rightly conclude that
A) Damian cannot afford the newer truck and will have to go back to sharing a truck with his sister.
B) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $900.
C) Damian figures that the additional benefit of having his own truck (as opposed to sharing) is at least $1,400.
D) the cost of having one's own truck outweighs the benefits.
Answer: B
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The economist known for his early empirical work supporting the efficient markets hypothesis is
A) Milton Friedman. B) John Muth. C) Eugene Fama. D) Glenn Hubbard.
Chandler (1994) maintains that domestic labor productivity has a tendency to dip with
(a) a decrease in the variety and number of new goods and services. (b) flat consumer demand. (c) increased foreign competition. (d) all of the above.