Multiple Choice
A consumer who buys a product without having compared prices at nearby stores
A) violates the assumption of rationality underlying consumer theory.
B) is irrational because she could save money by shopping around.
C) is rational because it would be costly to find out how much the product would cost elsewhere.
D) is rationally ignorant if she expects the costs of doing so to be greater than possible savings.
Correct Answer:
Verified
Correct Answer:
Verified
Q4: Identify the economic and political functions of
Q5: Rational ignorance refers to the idea that<br>A)decision-makers
Q6: Rational ignorance is relevant for decision-making<br>A)only in
Q7: A family making $30,000 pays $4,500 in
Q8: A flat tax with an exemption for
Q10: The distribution of tax burdens among various
Q11: The free-rider problem is<br>A)the use of the
Q12: Some economists argue for a _ tax
Q13: A proportional income tax structure implies that<br>A)marginal
Q14: The free-rider problem is encountered when<br>A)all individuals