All of the following statements regarding rational ignorance are true except
a) combined with special interest groups, it yields inefficiency in the provision of public goods
b) it allows special interest groups to exert political influence
c) it leads to an efficient outcome
d) none of the above
Ans: c) it leads to an efficient outcome
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Which is an example of "capital"?
A) A carpenter's skills B) A singer's voice C) A judge's unblemished reputation D) A blast furnace E) All of the above.
If the prices of both goods increase by 10 percent, the budget line
A. shifts to the right in parallel fashion. B. shifts to the left in parallel fashion. C. is unaffected since only relative price changes matter. D. pivots on the axis of the more expensive good.
Overvalued exchange rates were a persistent problem under ISI policies. In part, this was a deliberate policy in order to
A) increase imports. B) discourage exports. C) help targeted industries sell their exports. D) help targeted industries buy imports. E) increase the competition for targeted industries.
Positive marginal utility implies increasing total utility
a. True b. False