Why is it rational for individuals to be ignorant about public goods but not about private goods?
What will be an ideal response?
In the case of a private good, the individual enjoys all of the benefits and pays all of the costs so it is important to gather product information. In the case of a public good, the individual receives only a fraction of the benefits and pays only a fraction of the costs. Moreover, it is uncertain whether one individual's gathering information will have any impact on the public goods provided anyway.
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The part of the balance of payments that records (generally) minor transactions such migrant's transfers, copyrights, and trademarks is the
A) capital account. B) current account. C) financial account. D) statistical discrepancy account.
Following a decrease in the price of a good, an individual will purchase more of the now less expensive good and less of other more expensive goods. This is known as the _____ effect
a. income b. endowment c. substitution d. price e. scale