Econ 103 Final Boudreaux EXAM 2026
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deliberate choice of a person not to acquire a certain kind of information
because of its cost in terms of time and effort that yields little or no benefit.
Choose an answer
1 Trade deficit 2 Rational ignorance
3 Rational investment 4 Moral hazard
Don't know?
Terms in this set (78)
, Law of one price A good must sell for the same price in all
locations.
Arbitrage Buying low, selling high. Causes low price to rise
and high prices to fall.
Speculation Arbitrage through time
Shortage or excess demand Situation in which the demand for a product or
service exceeds its supply in a market. It is the
opposite of an excess supply.
As price moves toward equilibrium The QS rises and the QD decreases
as long as the price is below shortage
equilibrium there will always be a
change in demand = change in equilibrium
Goods and services that are legal Organ transplants, parental rights, and
to give away and accept, but not consensual sex.
legal to buy or pay for
Mercantilism Economic nationalism for the purpose of building
a wealthy and powerful state
mercantile system coined by Adam Smith. the system of political
economy that sought to enrich the country by
restraining imports and encouraging exports.
Mercantilism beliefs The amount of wealth in the world is finite. wealth
is money and money is wealth. all trade is zero
sum, if someone wins then someone else loses.
exports are good and imports are good.
QUESTIONS | 100% Verified Solutions | Already
passed!!
Save
Practice questions for this set
Learn 1 /7 Study with Learn
deliberate choice of a person not to acquire a certain kind of information
because of its cost in terms of time and effort that yields little or no benefit.
Choose an answer
1 Trade deficit 2 Rational ignorance
3 Rational investment 4 Moral hazard
Don't know?
Terms in this set (78)
, Law of one price A good must sell for the same price in all
locations.
Arbitrage Buying low, selling high. Causes low price to rise
and high prices to fall.
Speculation Arbitrage through time
Shortage or excess demand Situation in which the demand for a product or
service exceeds its supply in a market. It is the
opposite of an excess supply.
As price moves toward equilibrium The QS rises and the QD decreases
as long as the price is below shortage
equilibrium there will always be a
change in demand = change in equilibrium
Goods and services that are legal Organ transplants, parental rights, and
to give away and accept, but not consensual sex.
legal to buy or pay for
Mercantilism Economic nationalism for the purpose of building
a wealthy and powerful state
mercantile system coined by Adam Smith. the system of political
economy that sought to enrich the country by
restraining imports and encouraging exports.
Mercantilism beliefs The amount of wealth in the world is finite. wealth
is money and money is wealth. all trade is zero
sum, if someone wins then someone else loses.
exports are good and imports are good.
