Before digital photography, most film processing companies had a policy of printing every picture on a roll of film and allowing customers to request a refund for pictures that were not clearly developed. The companies did this knowing that most
customers did not ask for refunds. This was an example of consumers
A) failing to ignore sunk costs.
B) being overly optimistic about their future behavior.
C) not taking nonmonetary opportunity costs into account.
D) not making themselves aware of the policy regarding refunds.
Answer: C
Economics
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When isolating the substitution effect of a change in an individual's budget constraint, _____ is held constant
a. utility b. budget c. income d. consumption
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Generally, the prime interest rate:
A. moves in the opposite direction as the federal funds rate. B. remains constant over long periods of time. C. is highly inflexible downward. D. moves in the same direction as the federal funds rate.
Economics