In an enforceable contract one or both parties could invest too little in relationship-specific assets that increase the economic value their joint efforts can create
Indicate whether the statement is true or false
F
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Use the following supply and demand graph for product X to answer the question below.
What would happen if the government taxed the producers of this product because it has negative externalities in production?
A. price would decrease B. demand would decrease C. supply would decrease D. supply would increase
In the 1990s, Oprah Winfrey, the former national talk-show host, discouraged Americans from eating beef. She argued beef consumption could create major health problems, and, as a result, beef purchases and the price of beef fell substantially
Which of the following occurred? A) The supply curve of beef shifted to the left. B) The demand curve for beef shifted to the left. C) The supply curve of beef shifted to the right. D) The demand curve for beef shifted to the right. E) Neither the supply curve nor the demand curve for beef had changed.
Economic theory shows that the current account deficit is always equal to the capital account surplus. This means that
a. the federal budget must always be in balance. b. when a country exports more goods and services than it imports, it also imports assets equal to the difference. c. current account deficits should be avoided. d. trade deficits tend to be eliminated automatically.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease