When consumers or businessmen stop collecting information to make decisions at the point where marginal cost of data collection equals the marginal utility of the data, economists would call the decisions based on existing data
a. perfect decisions.
b. optimally imperfect decisions.
c. joint decisions.
d. rent seeking.
b
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The size of the expenditure multiplier is influenced by
i. the marginal propensity to consume. ii. autonomous spending. iii. the marginal tax rate. A) i only B) ii only C) iii only D) i and iii E) ii and iii
In the long run, a profit-maximizing monopolistically competitive firm sells at a price that is:
A. equal to average total cost, but higher than marginal cost. B. equal to marginal cost and marginal revenue. C. equal to average total cost, but lower than marginal cost. D. equal to demand, but higher than average total cost and marginal cost.
All points on the production possibilities curve represent efficient levels of production
a. True b. False Indicate whether the statement is true or false
Which of the following causes a difference in wages but does not necessarily qualify as discrimination?
A. differences in skills B. differences in experience C. differences in schooling D. differences in language E. All of the above lead to differences in wages but none of them necessarily qualifies as discrimination.