Why is a typical person likely to gather more information when buying a new car than when voting for a member of Congress?
A) because it is less costly to acquire information about consumer items than it is about political candidates
B) because a person's preferences are more likely to be met with little effort in the political sphere but this is not the case when buying a car in the private marketplace
C) because buying a new car affects a person more immediately and personally compared to voting for a member of Congress; in the latter, a person's vote is only one of many voters and therefore, not likely to have a large impact on the outcome
D) because the effects of buying a car are long term while a member of Congress has a relatively short tenure
C
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In the following table, fill in the columns for your return on investment if the price of your house increased or decreased by 20 percent, based on the down payments specified in the first column
Return on Your Investment From Down Payment A 20 Percent Increase in the Price of Your House A 20 Percent Decrease in the Price of Your House 100% 20 10 5
Let the production function be q = ALaKb. The function exhibits constant returns to scale if
A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.