Thinking about information as a good, what determines the information people are willing to pay for?
What will be an ideal response?
People are willing to pay for information so long as the marginal cost is less than or equal to its marginal benefit. For instance, consumers are willing to purchase information that has a marginal benefit to them that exceeds the price they must pay. Consumers might be willing to purchase information about the price(s) of large-ticket goods and services that are of interest. Workers might well be interested in buying information about salaries paid in occupations that interest them or salaries paid their co-workers. Employers are willing to buy information about the average salary offer given to college graduates with different majors.
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Refer to Table 21.1. If Martha's income doubled to $220,000 while the incomes of the other four residents did not change, what would happen to the original median income on Richlandia?
A) It would increase by $22,000. B) It would increase by $44,000. C) It would double. D) It would not change.
Before about 1975
a. any federal deficits were at least 5 percent of GDP. b. most federal deficits were less than 2 percent of GDP. c. the federal government never ran deficits. d. the federal government always ran a surplus. e. any federal deficits were at least 7 percent of GDP.