Which of the following best explains why public agencies are less likely to control costs than are private businesses?
A. Rent-seeking behavior
B. Corruption
C. The inefficiency of taxation
D. The incentive problem
Answer: D
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Which of the following lists has variables that all shift a good's demand curve?
A) price of the good, preferences, prices of substitution goods, income B) income, preferences, number of buyers, price of complementary good C) expectation of future price, price of the good, number of buyers, income D) Both answers A and B are correct.
Describe how each of the following changes would affect the equilibrium in the labor market in terms of the level of the real wage and quantity of employment in equilibrium:
(a) Increased immigration leads to higher labor supply at each real wage (b) The effort curve makes a parallel shift upward (c) Labor productivity increases (that is, the marginal product of labor increases at each level of employment).
Public goods face the
A) principle of rival consumption. B) free-rider problem. C) law of overproduction. D) exclusion principle.
"Extractive industries" include the production of all of the following products except:
a. fur. b. lumber. c. naval stores. d. bread.