Consumers Spend a Lot More Time Searching for Good Bargains

question 104

Multiple Choice

Consumers spend a lot more time searching for good bargains during recessions because:

• A)goods are more expensive during recessions and hence expected benefits of a search are higher.
• B)in recessions, many individuals are out of work, which lowers their opportunity cost of time.
• C)goods are more expensive during recessions and hence expected benefits of a search are higher and in recessions, many individuals are out of work, which lowers their opportunity cost of time.
• D)none of the statements associated with this question are correct.

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Definitions:

Fair Market Value

The price at which property would sell on the open market between a willing buyer and a willing seller, each having reasonable knowledge of the relevant facts.

Recourse

Recourse refers to the legal right to demand compensation or payment from an individual or entity responsible for a loss, debt, or other obligation.

Inventory

The total amount of goods and materials held by a business for the purpose of resale or production.

CIF Agreements

Contracts that stipulate the seller is responsible for the cost, insurance, and freight of goods being transported to a designated location.