Ronald Coase's insight regarding the firm was that
a. firms tend to be more profitable when economies of scale are greater
b. uncertainty and information are the keys to perfect competition
c. perfectly competitive firms tend to displace monopolies
d. economic activity is best understood in terms of the transaction costs of exchange
e. consumers often carry out transactions directly with resource suppliers
D
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According to the above figure, at an income level of Y1,
A) the economy saves an amount equal to BD. B) the economy dissaves an amount equal to BD. C) the average propensity to save is greater than one. D) the marginal propensity to save is falling.
The monetary rule is the view of the:
a. Keynesians that monetary policy is most important. b. Monetarists that monetary policy is most important. c. Classical economists that monetary policy is most important. d. Monetarists that the Fed should expand the money supply at a constant rate.
What are externalities, and how do they affect who pays the true cost of a polluting factory?
What will be an ideal response?
Related to the Economics in Practice on page 710: Which of the following is true concerning economic development in many countries?
A. It is affected by the level of corruption. B. It is affected by inefficiency in government. C. As corruption falls, the cost of production often falls. D. All of the above are true.