Consumers Spend a Lot More Time Searching for Good Bargains

question 127

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 preceding statements is correct.

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Definitions:

International Trade

involves the exchange of goods and services across international borders, influenced by comparative advantages, exchange rates, and global economic policies.

World Price

The worldwide market cost of a product, determined by the global forces of supply and demand.

Quantity Supplied

The quantity of a product that suppliers are ready to sell at a particular price during a defined time frame.