The decision not to acquire information because the cost of acquiring the information exceeds the expected benefit from the information is known as
A) rational ignorance.
B) the principle of minimum differentiation.
C) public choice theory.
D) inefficient provision.
A
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The capture theory of regulation predicts that
A) regulation helps producers to maximize profits. B) regulators capture the firm's economic profit and transfer it to consumers as consumer surplus. C) regulators eliminate the deadweight loss a monopoly can create. D) resources are used efficiently. E) regulators capture the firm's economic profit and transfer it to themselves.
The demand equation for the Widget Company has been estimated to be:
Q = 20,000 + 10 I - 50P + 20 PC where Q = monthly number of widgets sold, I = average monthly income, P = price of widgets, and PC = average price of competing goods. a. If next month's income is forecast to be 2,000, the price of competing goods is forecast to be $20, and the price of widgets will be set at $30, forecast sales. b. What will sales be if the price is dropped to $20?
A decrease in the interest rate, other things being equal, causes
a. an upward movement along the demand curve for money. b. a downward movement along the demand curve for money. c. a rightward shift of the demand curve for money. d. a leftward shift of the demand curve for money.
How much is induced consumption at a disposable income of 5000?
