1. AJ is buying a new car and chooses to pay $250 for upgraded floor mats because he is already spending $24,000; the $250 is only about 1 percent of the purchase price. This describes an example of
a. taking into account the opportunity costs of buying the car and making the best choice.
b. relative value because he is comparing the value of the floor mats relative to the value of the car.
c. the best way AJ can spend his money because he is thinking of everything he could do with his money.
d. the unseen alternatives of his decision, such as saving money or paying for college.
2. The reason people cannot have everything they want is because of
It is explicit because Tati did not consider or think through the various options and alternatives that she could have pursued with the $1000 before making the purchase. She may have had other explicit alternatives, such as paying off debt, investing the money, or saving for a future expense, but did not consider them in the moment of making the purchase.
a. scarcity, which means there are limited resources to satisfy unlimited wants.
2. The reason people cannot have everything they want is because of
a. scarcity.
b. explicit alternatives.
c. shortages.
d. credit.
a. Scarcity, which means there are limited resources to satisfy unlimited wants.
Tati made an impulse purchase by buying a $1000 handbag. An impulse purchase means that she most likely did not think of the _________________alternatives for the $1000.
a. best
b. explicit
c. implicit
d. worst