Why is it inefficient to be overinformed?
What will be an ideal response?
Information is costly to obtain. If the marginal cost of obtaining the information exceeds its marginal benefit, the individual would be better off by not obtaining the information. It is inefficient to acquire the information because the marginal benefit from the information does not make up for the marginal cost of obtaining it.
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Two goods are said to be complements when a fall in the price of one good:
A) leads to a fall in price of the other good. B) doesn't affect the demand for the other good. C) leads to a left shift in the demand for the other good. D) leads to a right shift in the demand for the other good.
Which of the following regions had the most impressive growth rate between 1960 and 2011?
A) India B) East Asia C) Latin America D) Sub-Saharan Africa
Which of the following is not a characteristic of less-developed countries?
A. high rates of illiteracy B. high unemployment C. low infant mortality rates D. low savings and investment rates
If two nominal exchange rates are given as 4 shekel/dollar and 0.711 dinar/dollar, so 1 dollar can buy either 4 shekels or 0.711 dinars, then each Jordanian dinar is worth ________ Israeli shekels, and each shekel is worth ________ dinars.
A. 0.51; 1.96 B. 0.178; 5.623 C. 5.623; 0.178 D. 1.96; 0.51