Explain why some amount of ignorance can be rational
What will be an ideal response?
Acquiring information is not costless. The rational voter will acquire information only if the expected benefit of the information exceeds the cost of acquiring the information. Often the expected benefit is less than the cost, so the person is "rationally ignorant" about some issues.
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A group of firms that try to work together to earn monopoly profits is called a(n)
A) patent. B) public enterprise. C) cartel. D) natural monopoly.
Cartels are inherently unstable
a. True b. False
An important reason why unconventional monetary policy was kept was that the:
A. inflation rate remained high. B. inflation rate remained low. C. short-term interest rate remained low. D. short-term interest rate remained high.
A game in which the first player has the power to confront the second player with a take-it-or-leave-it offer is the:
A. repeated prisoner's dilemma. B. ultimatum bargaining game. C. matching pennies game. D. Nash bargaining game.