Consumers Spend a Lot More Time Searching for Good Bargains

question 63

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 is correct.

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Definitions:

Cluster Samples

A sampling technique where the population is divided into groups (clusters) and a random sample of these clusters is selected to represent the whole population.

Sampling Error

Sampling error describes the difference between a sample statistic used to estimate a population parameter and the actual but unknown value of the parameter.

Sampling Error

The difference between a sample statistic used to estimate a population parameter and the actual but unknown value of the parameter.

Sample

A subset of elements chosen from a larger set (population), typically used to infer properties about the population.