Rational voter ignorance occurs because the marginal cost of obtaining information is higher than the marginal benefit from obtaining the information
a. True
b. False
Indicate whether the statement is true or false
True
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If the United States is a "net borrower" from abroad
A) net foreign investment must be positive. B) national saving is less than domestic investment. C) the United States must be exporting more than it is importing. D) net capital flows must be negative.
Which of the following combination of inputs is most closely reflective of decreasing marginal rate of technical substitution (MRTS)?
A) oil and natural gas B) sugar and high fructose corn syrup C) computers and clerks D) keyboards and computers
What is one way firms can enforce tie-in sales?
A) One of the goods has no close substitutes. B) contractual arrangements C) information asymmetry D) Any of the above.
Tom's Donuts can invest in a new espresso machine that costs $300 and will yield expected profits of $200 each year for two years. What is the present discounted value of the expected profits from this investment if the interest rate is 5%?
A. $185.93 B. $276.64 C. $371.89 D. $380.96