The recent Enron and Tyco scandals are an example of
A) the free-rider problem.
B) the adverse selection problem.
C) the principal-agent problem.
D) the "lemons problem."
C
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Using the demand schedule in the above table, if the firm's marginal cost is constant at $3.00, output for a perfectly price discriminating monopolist is
A) 2 units. B) 3 units. C) 4 units. D) 5 units.
Good A has an income elasticity equal to -0.8 and a cross price elasticity with respect to Good B of -0.75 . Then: a. Good A is an inferior good and Goods A and B are substitutes. b. Good A is an inferior good and Goods A and B are complements. c. Good A is a normal good and Goods A and B are substitutes
d. Good A is a normal good and Goods A and B are complements.
In the US we expect that during recessions
a. govt spending will increase b. tax revenues will decrease c. the federal budget will have a deficit d. all
Refer to the above table. If the product price increases from $3 to $4, then at the wage rate of $15, the firm will hire:
A. 2 workers
B. 3 workers
C. 4 workers
D. 5 workers