People are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a new car than they are to purchase a consumer ratings magazine that reviews pens and pencils before buying a new pen or pencil. Which of the following best explains this behavior?
a. Because the consumer ratings magazine must have a higher price for the issue reviewing pens and pencils.
b. Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information.
c. Because people generally do not know which products are reviewed by these consumer magazines.
d. None of the above explain this behavior.
B
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"Privatization of government owned industries is likely to increase unemployment in the short run" is a ________ statement about ________ policy.
A. normative; monetary B. normative; structural C. positive; fiscal D. positive; structural
Technical support provided by an Indian firm to a multinational company headquartered in New York is an example of a(n) ________
A) capital account transaction B) export of services by India C) transfer payment to the U.S. D) import of services by India
If the United States imposed a 25 percent tariff on imports of minivans, the effect would be to
a. raise the price and reduce the quantity of imports. b. raise the price and the quantity of imports. c. lower the price and the quantity of imports. d. raise the quantity and reduce the price of imports.
During Thanksgiving you participated in a pumpkin-pie eating contest. You really enjoyed the first two pies, the third one was okay, but as soon as you ate the fourth one you became ill and lost the contest. You got ________ utility from eating the first pie than from eating the third pie.
A. the same amount of B. less C. more D. less variable