This graph illustrates the marginal costs and marginal benefits of acquiring information before making a major purchase.
Suppose the marginal cost and marginal benefit curves were MC0 and MB0 several decades ago. However, because information about this product is now available online, the:
A. demand for information will increase.
B. optimal amount of information will increase.
C. optimal amount of information will stay the same, but it will cost less to acquire.
D. optimal amount of information will decrease.
Answer: B
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If the demand curve is the same as the marginal benefit curve and the supply curve is the same as the marginal cost curve, then the quantity at which they cross is
i. the equilibrium quantity. ii. the allocatively efficient quantity. iii. the quantity with no deadweight loss. A) i, ii, and iii. B) only i. C) only ii. D) only i and ii. E) only i and iii.
All of the following are forms of social regulation EXCEPT
A) the Food and Drug Administration regulating the quality of drugs. B) the Public Utility Commission regulating the price of telephone service. C) the Environmental Protection Association regulating automobile emissions. D) the Occupational Safety and Health Administration regulating workplace safety.
Which is true to promote economic growth?
a. govts should encourage a relaxation of the child labor laws, to allow younger children to leave school by age 12 in order to work and earn income b. The US govt should often lower taxes on foreign firms who want to locate plants in the US c. Govts should encourage women to have 5 or more babies to foster economic growth d. all
The International Labor Organization has been around since 1919, and has a consistent record of being willing to take action against countries that violate core labor standards
Indicate whether the statement is true or false