A car sells at different prices at different dealerships in an oligopolistic market. If a consumer has imperfect information about the price of a car at each dealership, he should
a. always gather all available information about prices.
b. gather information about prices until the expected marginal utility of more information equals the marginal cost of gathering it.
c. gather information about prices only if it can be gathered without cost.
d. ignore information about prices because it is irrelevant to making an "optimally imperfect" decision.
b
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There is an exchange rate between
A. every pair of currencies. B. the world’s major currencies but not between the currencies of less-developed countries. C. currencies on a fixed exchange rate system but not for those on a floating rate system. D. the currencies of the European Union but not for the nations outside the European Union.
Aggregate demand is
A) the horizontal summation of all demand curves for a product. B) the sum of all planned expenditures for the economy. C) the total quantity of all goods sold in an economy in a year. D) the horizontal summation of all demand curves for state, local, and federal governments and business firms.
Which of the following is an example of a normative economic statement?
a. The inflation rate in the United States decreased from 4 percent last year to 3 percent this year as a result of lower energy prices. b. The economy grew at an annual rate of 5 percent during the first quarter of this year. c. If two automobile companies merge, it is likely that the price of automobiles will rise. d. An increase in international trade benefits some workers but hurts others. e. The minimum wage should be increased so that low income workers can afford to keep up with the cost of living.
Which parable describes the problem of wild animals that are hunted to the point of extinction?
a. Coase theorem b. The Tragedy of the Commons c. The Wise Woman d. The Tortoise and the Hare