The number of US households with access to the Internet is growing rapidly. Compared to 50 years ago, one would predict that when considering a major purchase, people today will gather:
A. more information because the Internet has lowered the cost of gathering information.
B. less information because the Internet has lowered the cost of gathering information.
C. more information because the Internet has increased the cost of gathering information.
D. less information because the Internet has increased the benefit of gathering information.
Answer: A
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Demand is generally
A. equally elastic in both the short run and the long run. B. relatively more elastic in the long run than in the short run. C. relatively more elastic for "necessities" than it is for "luxuries." D. relatively more elastic in the short run than in the long run.
When an Australian citizen enjoys military protection in Australia without contributing to the cost of Australia's defense budget, then
A) this citizen is a free rider. B) Australia is a free rider. C) this citizen receives no benefits if Australia is attacked. D) Australia's defense budget will run out of funds.
What are two arguments against using the economic method?
a. It is not a fair and diverse approach. b. It is not possible to prove that people behave rationally. c. People do not and should not take only economic factors into their decision making. d. It is too complicated and theoretical.
When a monopolist chooses the output that maximizes profits, we know that MR = MC and also that P > MR. This is inefficient because a. the monopolist is not minimizing costs
b. the monopolist is the only producer in the market. c. the monopolist fails to make transactions where the marginal benefit is greater than the marginal cost. d. there are entry barriers.