Which of the Following Is Consistent with the Implications of the Economic

question 146

Multiple Choice

Which of the following is consistent with the implications of the economic guidepost that information is costly to acquire?

• A) Most people do not know the names of their legislators in the U.S. Congress, but those same individuals are likely to know the names of all the cast members on a popular TV show.
• B) In considering purchases, people are more likely to purchase a consumer ratings magazine that reviews new automobiles before buying a car, but are unlikely to purchase a consumer ratings magazine that reviews pens and pencils before buying a pen or pencil.
• C) When shopping for something like a new calculator, people will generally not spend the time to do price comparisons at all of the stores in town that sell calculators.
• D) All of the above are consistent with the economic way of thinking.

---

Definitions:

Monopolists

Firms or individuals who are the sole providers of a particular good or service, possessing significant control over market price.

Constitutional Rights

Rights afforded to individuals by the constitution of a country, which are intended to protect freedoms from governmental interference or restriction.

Buyers

Individuals or entities that purchase goods or services in a market.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical.