Why is it rational for individuals to be ignorant about public goods but not about private goods?
What will be an ideal response?
In the case of a private good, the individual enjoys all of the benefits and pays all of the costs so it is important to gather product information. In the case of a public good, the individual receives only a fraction of the benefits and pays only a fraction of the costs. Moreover, it is uncertain whether one individual's gathering information will have any impact on the public goods provided anyway.
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Refer to Figure 5-1. The market equilibrium quantity is ________ thousand vaccinations
A) 200 B) 400 C) 600 D) > 600
The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________
A) are; they both offer considerable payoff and are equal in the long run B) are; they both involve the smoothing out of now and future consumption C) are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services D) could possibly be; different economic states occur at different points in time E) are not; asset swapping never relates to intertemporal trade
The payroll tax is a direct tax.
Answer the following statement true (T) or false (F)
Refer to the above figure. Profits for this firm are
A. negative. B. zero. C. positive. D. undetermined without more information.