Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal
A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor.
B) The increase in output due an additional unit of capital will be larger in Country A than in Country B.
C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B.
D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
B
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Some observers assert that oligopolies are less socially desirable than pure monopolies because
A) monopolies are often government-regulated, whereas collusion among oligopolies may lead to similar results as a monopoly yet, having several firms, may give the illusion of competition.
B) monopolies have unique products, whereas product differentiation in oligopolies would lead to economic inefficiencies.
C) mutual interdependence among firms in an oligopoly would lead to more inefficiencies than in the case of a monopoly.
D) oligopolies tend to engage in advertising more so than monopolies.
A large farming operation which uses a potent fertilizer is located up river from a trout farmer. If property rights of the river exist and transactions costs are low, the amount of pollution will be ________
A) efficient only if the trout farmer owns the river B) inefficient if the farming operation owns the river C) efficient if either the farming operation or the trout farmer own the river D) always inefficient
What is a Lorenz curve?
What will be an ideal response?
If a lender charged a 4 percent nominal interest rate and the expected inflation rate is 1 percent, what is the difference between the real rate the lender received and the real rate the lender expected when actual inflation ended up being 1 percent?
a. 2 percent b. 4 percent c. -4 percent d. 1 percent e. 0 percent