Why Is a Typical Person Likely to Gather More Information

question 233

Multiple Choice

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 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
• B)because it is less costly to acquire information about consumer items than it is about political candidates
• 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

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Definitions:

Short-Run Aggregate-Supply Curve

A graphical representation that shows the relationship between the total production of goods and services at different price levels in the short term, assuming some input prices are fixed.

Unemployment Rate

The measure of individuals in the labor force who are without jobs but are actively trying to find employment.

Price Level

A measure of the average prices of goods and services in an economy, indicating the cost of living and inflation.

Price Expectations

The anticipations of consumers, businesses, and investors about future price levels, which can influence current economic decisions and behaviors.