When deciding whether to buy a second car, the economic way of thinking indicates that the purchaser should compare
a. the benefits expected from two cars with the cost of both.
b. the additional benefits expected from a second car with the cost of the two cars.
c. the dollar cost of the two cars with the potential income that the cars will generate.
d. the additional benefits of the second car with the additional cost of the second car.
D
You might also like to view...
Among the prospective rules that set target variables directly, only the nominal GDP rule
A) provides a nominal anchor. B) is easy for the Fed to achieve. C) allows a neutral response to a supply shock. D) is insulated from the effects of unstable velocity.
Which of the following is the most likely explanation of Japan's very low market interest rates in the early 2000s?
A) expected deflation B) an increasing budget deficit C) an increasing trade surplus D) an increase in corporate profits