If manager performance is easily observable then
A) profits will be maximized for the firm.
B) the owner can directly reward the manager.
C) the manager will attempt to manipulate the reported profit.
D) the firm's stock price will go up.
B
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Adam Smith noted in 1776 that
A. the wealth of nations comes from the money the nations have accumulated. B. the wealth of nations comes from the gold the nations have accumulated. C. the wealth of nations comes from the resources that produce the nation's goods and services. D. the problem of scarcity had been licked.
If the price is less than a perfectly competitive firm's minimum average variable cost, the firm
A) makes an economic profit. B) operates and incurs an economic loss equal to total fixed cost. C) operates and incurs an economic loss equal to average variable cost. D) shuts down and incurs an economic loss equal to total fixed cost. E) shuts down and incurs an economic loss equal to average variable cost.
For a good to be scarce, it must be something that
a. has economic value. b. people find useful. c. is available only in limited quantities. d. All of these.
Why does continued foreign investment in U.S. stocks and bonds and foreign companies continuing to build factories in the United States result in a current account deficit in the United States?
What will be an ideal response?