Voters will gather information on voting alternatives:
a. when the cost of acquiring such information is exorbitantly high
b. as long as the marginal benefit to them of acquiring additional information exceeds the marginal cost to them.
c. as long as the marginal benefit to them of the information is less than the marginal cost to them of gathering the information.
d. because the welfare of the community is always perceived to be more important than the welfare of the individual.
b
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When the U.S. economy hits a recession, fiscal policy automatically becomes:
A. contractionary because average tax rates go down and spending on welfare programs goes up. B. expansionary because average tax rates go down and spending on welfare programs goes up. C. discretionary because the government is quick to react to changes in the business cycle. D. contractionary because average tax rates go up and spending on welfare programs goes down.
The law of demand is derived under the assumption of
A. constant consumer tastes and preferences. B. constant marginal utility. C. constant real incomes. D. constant prices.
A firm has $200 million in total revenue and explicit costs of $190 million. If its owners have invested $100 million in the company at an opportunity cost of 10 percent interest per year, the firm's accounting profit is:
a. $400 million. b. $100 million. c. $80 million. d. $10 million. e. zero.
Increasing government taxation or regulation of an industry generally increases the supply of goods
a. True b. False Indicate whether the statement is true or false