Market economies have air and water pollution, but nonmarket economies
A. have much less pollution.
B. have pollution that is much worse than in market economies.
C. have about the same amount of pollution as market economies.
D. do not generally suffer from external effects of any sort.
Answer: B
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Which of the following statements best summarizes why bureaucrats tend to be budget maximizers?
a. The larger the budget, the more assured bureaucrats can be of having sufficient resources to complete a task. b. The larger the budget, the more power and prestige the bureaucrat wields. c. The larger the budget, the larger the workload of the bureaucrat. d. The larger the budget, the more work in the public interest the bureaucrat can undertake.
The aggregate supply curve slopes upward when the real wage falls initially as the price level rises
a. True b. False Indicate whether the statement is true or false
Which of the following statements is not correct?
a. If the signaling theory of education is correct, additional schooling does not affect worker productivity but rather signals a correlation between natural ability and education. b. The theory of efficiency wages suggests that firms pay higher wages to workers in order to induce workers to be more productive. c. Discrimination against workers of a certain race or ethnicity is often in conflict with a firm's desire to maximize profits. d. The theory of compensating wage differentials reflects the different skills, abilities, and productivity of workers.
The tobacco industry has a Lerner index of 0.76. Based on this information, compute the optimal markup factor.
A. 0.24 times price B. 4.17 times price C. 4.17 times marginal cost D. There is not sufficient information to determine the optimal markup factor.