Shortages occur when
a. many people are unemployed.
b. interest rates go up.
c. people have trouble supplying the goods and services at current prices.
d. the United States imports more than it exports.
Answer: c. people have trouble supplying the goods and services at current prices.
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If a public good is financed through Lindahl prices, those whose total willingness to pay for the public good is high will end up paying a higher Lindahl price than those whose total willingness to pay for the public good is low.
Answer the following statement true (T) or false (F)
In order to maximize profits
A) the derivative of total revenue with respect to quantity must be less than the derivative of total cost with respect to quantity. B) the derivative of total revenue with respect to quantity must be greater than the derivative of total cost with respect to quantity. C) the derivative of total revenue with respect to quantity must equal the derivative of total cost with respect to quantity. D) none of these choices.
When people believe that an economic fluctuation is both permanent and caused by supply-side events, the result is ______.
a. a positive relationship between the unemployment and inflation rates b. a negative relationship between the unemployment and inflation rates c. high unemployment rates and low inflation rates d. low unemployment rates and high inflation rates
One way to market a proposal for a new business venture, especially when architectural changes are ruled out and the opposition seems strong is to:
A. pretend that architectural changes will be made. B. withdraw the proposal. C. emphasize the level of crisis that exists inside the firm. D. replace the Board of Directors.