Which of these is an example of rational inattention?
A) submitting a paper with a few typos, knowing that they won't affect the grade
B) sleeping in later than you had intended
C) a firm delaying price changes to avoid losing customers
D) a firm being unsure of its competitors' prices
E) a firm changing prices so often its customers stop noticing
A
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If a polluting producer is forced to pay a pollution charge, what is the effect on the supply and demand curves for the product?
A) The quantity supplied along the firm's supply curve increases. B) The firm's demand curve shifts leftward. C) The firm's supply curve shifts rightward. D) The firm's supply curve shifts leftward. E) Both the supply curve and the demand curve shift leftward.
In the history of banking, warehouse receipts refer to receipts
A) that goldsmiths once issued acknowledging that they held a customer's gold. B) for storing furniture in a warehouse. C) goldsmiths issued to each other when they borrowed gold. D) for storing food and other perishables in a warehouse.