Is a typical person likely to gather more information when buying a new computer or when voting for a member of the U.S. Senate? Why?
What will be an ideal response?
The typical person is likely to gather more information when buying a new computer as he or she will be significantly and immediately affected by this decision. When voting for a member of the Senate, the person is only one of many voters and his or her vote is therefore diluted among all other votes and is likely to have very little impact. Because of this, there is little incentive to invest the time and energy to gather information about the candidates.
You might also like to view...
Which of the following is a liability on the balance sheet of the Federal Reserve System?
A) currency B) U.S. government securities C) mortgage-backed securities D) None of the above are correct because they are all assets of the Federal Reserve.
An expansionary monetary policy, all else equal, will:
A) depreciate the domestic currency. B) appreciate the domestic currency. C) all of the above. D) none of the above.