The evidence on the potential for input substitution in the service sector suggests that:
A) there may be more opportunities for input substitution than was previously thought, especially in areas such as health care, financial services, and the even the fine arts.
B) the traditional view that the potential for input substitution is extremely limited is correct.
C) while one or two areas of the service sector may see a small amount of input substitution, most areas will see little or none.
D) input substitution will only be feasible so long as the production process requires a relatively small amount of labor to begin with.
A
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________ is the process of determining terms of exchange by individual negotiations between a buyer and a seller
A) Backward induction B) Bilateral bargaining C) Arbitration D) Collective bargaining
In which of the following cases is the slope of a line positive and less than infinity?
A) As the variable measured on the x-axis decreases, the variable measured on the y-axis decreases. B) As the variable measured on the x-axis increases, the variable measured on the y-axis decreases. C) As the variable measured on the y-axis increases, the variable measured on the x-axis does not change. D) As the variable measured on the y-axis increases, the variable measured on the x-axis decreases.
Which of the following statements is false?
A) Asymmetric information can exist both before and after a transaction. B) Moral hazard occurs when one party to a transaction changes his or her behavior in a way that is hidden from and costly to the other party. C) Adverse selection has the potential to eliminate some markets. D) none of the above
A legal arrangement whereby a firm can hire only union labor is called
A) a union shop. B) a closed shop. C) a sweat shop. D) an open shop.