Which of the following is consistent with the implications of the economic guidepost that information is costly to acquire?
a. Most people do not know the names of their legislators in the U.S. Congress, but those same individuals are likely to know the names of all the cast members on a popular TV show.
b. In considering purchases, people are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a car, but are unlikely to purchase a consumer ratings magazine that reviews pens and pencils before buying a pen or pencil.
c. When shopping for something like a new calculator, people will generally not spend the time to do price comparisons at all of the stores in town that sell calculators.
d. All of the above are consistent with the economic way of thinking.
D
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The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. When 400 pounds of coffee are produced and consumed in Kaffenia each day, that is
A) more efficient than when 300 pounds are produced and consumed because more is always better than less. B) inefficient because the marginal social benefit exceeds the marginal social cost. C) inefficient because the marginal social cost of the 400th pound exceeds its marginal social benefit. D) inefficient because the opportunity cost of producing more coffee exceeds its marginal social benefit.
Which of the following is a possible drawback of horizontal fracking?
a. A fall in the cost of recovering natural gas and oil b. An increase in the price of gas and oil as a result of a decline in the supply of natural gas and oil c. A fall in imports of natural gas and oil d. A fall in environmental exploitation due to the means employed to extract oil e. An increase in harmful air emissions, water contamination, and problems associated with the disposal of harmful waste fluids
A rise in the interest rate tends to
a. reduce many kinds of spending b. stimulate investment in high-profit industries c. cause bond prices to increase d. encourage confidence in the Fed's control over the economy e. suggest a downturn in the economy is coming within 6 months
What are the arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions? Explain