Which of these is an example of rational inattention?
A) submitting a paper with a few typos, knowing that they won't affect the grade
B) sleeping in later than you had intended
C) a firm delaying price changes to avoid losing customers
D) a firm being unsure of its competitors' prices
E) a firm changing prices so often its customers stop noticing
A
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The concept of net domestic investment refers to ________.
A. the difference between the market value and book value of outstanding capital stock B. the amount of machinery and equipment used up in producing the GDP in a specific year C. gross domestic investment less net exports D. total investment less the amount of investment goods used up in producing the year's output
What are inventories? What usually happens to inventories at the beginning of a recession, and what usually happens to inventories at the beginning of an expansion?
What will be an ideal response?
Opportunity cost is best defined as
A) the sum of the dollar values of all alternatives given up when choices are made. B) the cost of producing the purchased goods. C) the next highest valued alternative when a choice is made. D) the dollar price of the purchased item.
Under what circumstances would a voter rationally choose to be ignorant rather than informed of the public choices at hand in an election?
a. When the benefit consumers anticipate from becoming informed and voting exceeds the cost. b. When information and the time required to acquire and digest it are scarce, consumers concentrate on public choices rather than private choices. c. When information and the time required to acquire and digest it are scarce, consumers concentrate on private choices rather than public choices. d. When the anticipated benefit from voting to consumers is lower than the cost.