This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume that you have heard news that a local radio station is hosting a luncheon at your school by ... (Read 138 times)

crobinson2013

  • Hero Member
  • *****
  • Posts: 535
on: Jun 29, 2018
Assume that you have heard news that a local radio station is hosting a luncheon at your school by offering hot dogs, chips and cola at no expense to the student body. Why would economists say that this lunch is not truly free?
 
  What will be an ideal response?

Question 2

Suppose that households became mistrustful of the banking system and decide to decrease their checking account balances and increase their holdings of currency.
 
  Using the money demand and money supply model and assuming everything else is held constant, the equilibrium interest rate should
  A) decrease. B) increase.
  C) not change. D) increase, then decrease.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

katieost

  • Sr. Member
  • ****
  • Posts: 358
Reply #1 on: Jun 29, 2018
Answer to Question 1

The lunch is not free for a couple of reasons. First, in order for the radio station to offer it they had to give up real resources in order to provide it. Secondly, it is likely that if the luncheon is offered at no expense to the students they will likely have to spend at least some amount of time waiting in line to get it. This time represents an opportunity cost which is not likely to be free.

Answer to Question 2

B


crobinson2013

  • Member
  • Posts: 535
Reply 2 on: Jun 29, 2018
Gracias!

parshano

  • Member
  • Posts: 333
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

People with alcoholism are at a much greater risk of malnutrition than are other people and usually exhibit low levels of most vitamins (especially folic acid). This is because alcohol often takes the place of 50% of their daily intake of calories, with little nutritional value contained in it.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

This young boy with muscular dystrophy needs to receive tube feedings and home nursing care. He atte This young boy with muscular dystrophy needs to receive tube feedings and home nursing care. He atte
Treating the younger school-age child Treating the younger school-age child
Primary School Attendance in World Regions Attending primary school is common but not universal, wo Primary School Attendance in World Regions Attending primary school is common but not universal, wo
Baby Station Baby Station
Ratio of College Wages to High-School Wages Ratio of College Wages to High-School Wages
Two radio antennas are 130 m apart on a north-south line. The two antennas radiate in phase at ... Two radio antennas are 130 m apart on a north-south line. The two antennas radiate in phase at ...
Video: Effect of blood chemistry - stimuli, hyperventilation response and hypoventilation response

For a complete list of videos, visit our video library