A Consumer Might Buy from a High-Priced Local Hardware Store

question 140

Multiple Choice

A consumer might buy from a high-priced local hardware store instead of going to a big discount store several miles away because _____

• A)the local store will still have lower money prices.
• B)the time cost of going to the local store is equal to going to the discount store.
• C)the local hardware store is a bargain for people who value time highly.
• D)the local hardware store is a bargain for people who earn low hourly wages.
• E)the time cost of going to the discount store is less than going to the local hardware store.

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Definitions:

Limited Resources

The economic principle that the available resources (such as time, money, and raw materials) are insufficient to satisfy all wants and needs.

Unlimited Wants

The economic concept that human desires and needs are infinite and vary in intensity, contrasting with limited available resources.

Normative

In economics and philosophy, refers to statements or propositions that express values, ethics, or moral prescriptions, indicating how things ought to be.

Positive

Characterized by or indicating the presence or affirmative action of a feature, condition, or outcome.