Is a typical person likely to gather more information when buying a new automobile or when voting for a member of the U.S. Congress? Why?
What will be an ideal response?
The typical person is likely to gather more information when buying a new automobile as he or she will be significantly and immediately impacted by this decision. When voting for a member of Congress, 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.
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A sales tax imposed on sellers shifts the supply curve leftward for the taxed good because the
A) tax is paid by the seller to the government and is, therefore, like a cost of production. B) tax is actually shifted entirely onto the buyer who can afford only a smaller supply. C) higher price causes entry into the market. D) tax shifts the demand curve leftward.
The market supply curve for a public good is derived from the typical profit-maximizing behavior of firms
a. True b. False Indicate whether the statement is true or false