When individuals take externalities into account when making decisions, economists say they are:
a. internalizing the externality.
b. eliminate the externality.
c. subsidize a positive externality.
d. subsidize a technology spillover.
Answer: a. internalizing the externality.
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Capital deepening occurs when
a. the per capita income increases over time. b. real GNP increases over time. c. the capital/labor ratio does not change. d. the capital/labor ratio increases over time.
After the American Revolution, the public domain expanded and the amount of community property held by the federal government grew considerably. If it had stayed community property, there would have been problems, according to Hughes and Cain (2011)
These problems include which of the following? (a) Individuals using it would not have incentive to conserve it or use it wisely. (b) The problem of "free riders" would have been troublesome and resulted in a "free-for-all," which could have ended in violence. (c) Each person faced incentive to overuse the communal rights of others. (d) All of the above.
The McCallum management principles advocate the use of
a. time-motion study to determine the most productive way to perform job-tasks. b. employee stock-purchase programs. c. internal accounting systems and performance evaluations. d. leveraged buy-outs to increase the firm's control of an industry.
U.S. labor productivity had slowed down in the 1970s and 1980s, but recent data shows that labor productivity has once again increased in the country
a. True b. False Indicate whether the statement is true or false