The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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Which of the following statements is true?
A) Network effects act as barriers to entry in a market. B) Economies of scale act as incentives for new firms to enter a market. C) If a firm is enjoying economies of scale, then its product must have network effects. D) If a firm's product has network effects, then the firm must be enjoying economies of scale.
Taxes:
A. may benefit many of the consumers in the market. B. are sometimes used to correct market failures. C. are sometimes used to transfer surplus from producers to consumers. D. are sometimes used to transfer surplus from consumers to producers.
Refer to Figure e. Brandon and Allie want to go on a date one summer evening. Allie is a Red Sox fan, while Brandon is a Mets fan. Both teams are playing that evening, but not against each other. Each would rather watch their favorite team, but neither can force the other to watch a particular game, and each is willing to suffer through the other's game if it means time together. If Allie watches the Mets, what is Brandon's best response?
A. Brandon should watch the Red Sox.
B. Brandon should watch the Mets.
C. It does not matter which Brandon watches; he is indifferent between the Red Sox and the Mets.
D. Brandon should not consider Allie's choice when making her decision.
Laws that prohibit collective bargaining agreements requiring a worker to join a union as a condition of employment are called
a. collective bargaining agreements. b. minimum wage laws. c. union shop laws. d. right-to-work laws.