Suppose Mary Is Willing to Pay Up to $15,000 for an Used

question 142

Multiple Choice

Suppose Mary is willing to pay up to $15,000 for an used Ford pick-up truck. If she buys one for $12,000, her ______ would be ______.

• A)benefit; $12,000
• B)cost; $15,000
• C)economic surplus; $3,000
• D)economic surplus; $12,000

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Definitions:

Psychologists

Professionals who study mental processes and behavior in humans and animals through observation, experimentation, and analysis.

Cultural Personality

How culture affects personality traits and behaviors, acknowledging that different cultures can lead to variations in personality across populations.

Hofstede

A framework for cross-cultural communication, developed by Geert Hofstede, that analyzes cultural dimensions and their impact on behavior in different societies.

Low In Uncertainty Avoidance

A characteristic of cultures that have a high tolerance for ambiguity and uncertainty, and are more accepting of risk and change.