Because information is costly to acquire,
a. people will rationally choose not to become fully informed when making decisions.
b. people will generally choose to become as fully informed as possible when making decisions.
c. people will generally choose to acquire no information that would be relevant to their decisions.
d. none of the above are true.
A
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Suppose the economy is initially experiencing a recessionary ga
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an inflationary ga
Trade with the United States during the late 19th and the first half of the 20th century benefited those individuals living in less developed countries by
(a) Boosting their incomes. (b) Restricting markets. (c) Exploiting their resources. (d) Increasing pollution and crime.
Labor productivity is computed as
A. per capita real GDP divided by the number of workers. B. real GDP divided by the number of workers. C. real GDP divided by population. D. per capita real GDP divided by population.
If the marginal revenue of a producer exceeds his marginal cost:
A) profit is maximized. B) profit is minimized. C) additional production enhances profits. D) additional production reduces profits.