Suppose you value a special watch at $100 . You purchase it for $75 . On your way home from class one day, you lose the watch. The store is still selling the same watch, but the price has risen to $85 . Assume that losing the watch has not altered how you value it. What should you do?
a. Pay the $85 to buy the watch.
b. Wait to see if the watch goes on sale. If the price drops to $75 or less, buy the watch.
c. Wait to see if the watch goes on sale. If the price drops to $25 or less, buy the watch.
d. Do not buy the watch.
a
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It is possible to analyze education decisions in a manner similar to the decision to acquire more
A. capital. B. leisure. C. work. D. goods and services.
An argument that comes up from time to time is that credit unions have an advantage over other financial depository institutions in the sense that they are non-profit institutions and, therefore, are exempt from taxes on income that other private depository institutions pay. As a result, credit unions may be able to charge lower rates of interest to borrowers and pay a higher rate to depositors than these other institutions. What do you think of this argument?
What will be an ideal response?