Because Jess didn't have the time to understand the issue, she did not vote on the amendment about clean energy. Jess's behavior demonstrates the economic principle of ________
A) diminishing marginal utility
B) voting preferences
C) rational ignorance
D) minimum differentiation
C
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Which of the following is an example of a production function with fixed proportions?
A) putting orange juice into cartons B) mowing lawns C) cutting hair D) teaching economics
Workers in industrial countries earn much higher wages than workers in developing countries because:
a. the industrial countries are labor rich and capital poor economies. b. the industrial countries lack a steady supply of unskilled laborers. c. the industrial countries produce labor intensive goods. d. the marginal productivity of labor is low in the industrial economies. e. the marginal productivity of labor is high in the industrial economies.
Markets may have difficulty providing the proper quantity of a public good because
a. individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good. b. the good generally has a very large value to consumers relative to its cost of production. c. the good is one that tends to benefit a large number of people. d. the large profit involved in the production of a public good is generally too much for private firms to effectively pay out to shareholders.
Suppose the reserve requirement is 20 percent and banks hold no excess reserves. A $1 billion sale of government securities by the Fed will:
A. reduce checkable deposits in the banking system by $1 billion. B. increase checkable deposits in the banking system by $5 billion. C. reduce checkable deposits in the banking system by $5 billion. D. increase checkable deposits in the banking system by $1 billion.