Suppose MPL = 40 and MPK = 20 and the rental rate on capital is $10 . If the level of production is currently efficient, the wage rate must be

In the figure above, suppose the economy is initially at point B. Then the interest rate in Japan rises relative to the interest rate in the United States. This change ________ the supply of dollars and the market moves to a point such as ________

A) decreases; A B) decreases; E C) increases; D D) increases; C

Rational ignorance suggests that voters will

A) be ignorant about all issues. B) be ignorant about issues that are of no special interest to them. C) pursue information on all issues before voting. D) avoid voting if they have no information.