If the economy relies entirely on markets to answer the WHAT question, it tends to _____ goods with external benefits and _____ goods with external costs.
A.) Overproduce; overproduce
B.) Overproduce; under produce
C.) Under produce; overproduce
D.) Under produce; under produce
C.) Under produce; overproduce
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Most international investment finance today comes from
A) portfolio and foreign direct investment. B) tax collections. C) government financing. D) the sale of antiques.
The table above gives the labor market for a small foreign economy. A(n) ________ would create ________
A) minimum wage of $9.00; a decrease in job search. B) minimum wage of $5.00; an increase in job rationing. C) efficiency wage of $9.00; an increase in job rationing. D) efficiency wage of $8.00; unemployment and job rationing. E) union-negotiated wage of $7.50; unemployment and job rationing.
In the United States, major league baseball is exempt from antitrust laws. Before 1975, the baseball team owners agreed to hold an annual draft of amateur baseball players
Once the players were drafted and signed by a team, they were effectively tied to that team for life. This allowed baseball owners to operate like ________ in the market for player services. A) perfect competitors B) monopolistic competitors C) a monopsonistic cartel D) a monopoly
The U.S. antitrust enforcers will likely block a merger if
A) the merging firms already earn excessive profits. B) the merging firms are in different markets. C) the merger will substantially increase market power. D) the degree of concentration declines as a result of the merger.