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

Author Question: Suppose a consumer is torn between buying a Chevy Tahoe or a Ford Expedition, each selling for ... (Read 63 times)

folubunmi

  • Hero Member
  • *****
  • Posts: 524
on: Jun 29, 2018
Suppose a consumer is torn between buying a Chevy Tahoe or a Ford Expedition, each selling for 30,000. He eventually decides on the Tahoe. What's his opportunity cost?
 
  A) 30,000
  B) 30,000 plus taxes, tags, insurance, etc.
  C) The satisfaction he would have experienced owning the Ford Expedition
  D) The frustration he will face owning the Chevy Tahoe
  E) B, C, and D above.

Question 2

The real interest rate charged on a loan is the
 
  A) prime rate.
  B) prime rate plus the risk premium.
  C) the rate charged minus the costs of supplying credit.
  D) the rate charged minus the expected rate of inflation.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Silverbeard98

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

D


folubunmi

  • Member
  • Posts: 524
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

bdobbins

  • Member
  • Posts: 326
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
Charles Sheeler, Criss-Crossed Conveyors—Ford Plant. Charles Sheeler, Criss-Crossed Conveyors—Ford Plant.
The Ford logo on display at the 2009 New York International Auto Show. The Ford logo on display at the 2009 New York International Auto Show.
A turbocharged Ford three-cylinder 1.0 liter Eco Boost engine. A turbocharged Ford three-cylinder 1.0 liter Eco Boost engine.
Ford spring-lock connectors require a special tool for disassembly. Ford spring-lock connectors require a special tool for disassembly.
Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price. Cost = $99.49; Rate of markup based on cost = 32%. Find the markup and selling price.
Video: Corpus Callosum Animation

For a complete list of videos, visit our video library