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Groanier Groanier
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6 years ago
Rational inattention refers to ________.
 
  A) the risk a firm runs when they do not pay attention to their customers
  B) firms making infrequent price decisions because of the time and effort those decision require
  C) the cost to the firm of losing sales from alienating customers
  D) all of the above
  E) none of the above

Question 2

Proportional income taxation is distorting because
 
  A) people do all they can to avoid paying taxes.
  B) the competitive equilibrium is not Pareto optimal.
  C) firms do all they can to avoid paying taxes.
  D) the government budget constraint does not hold.

Question 3

One option the government has to restore funding to transfer programs such as Social Security is to raise or eliminate the income cap on Social Security payments.
 
  Other things equal, this would result in ________ in the after-tax return to capital goods and cause firms and households to accumulate ________ capital. A) an increase; more
  B) an increase; less
  C) a decrease; more
  D) a decrease; less
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StewartStewart
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6 years ago
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Groanier Author
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#2
6 years ago
Above and beyond my expectations for this site
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