Society might argue that there are cases in which it is appropriate to resist price increases in situations where scarcity is serious. Included would be the case of
a. unrestrained monopoly that would otherwise succeed in gouging the public.
b. taxes imposed on products capriciously and inappropriately.
c. rising prices falling so heavily on the poor that rationing becomes preferable.
d. All of the above are correct.
d
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The very existence of an insurance policy may cause people to behave in a riskier manner, which will increase the moral hazard problem
Indicate whether the statement is true or false
The Solow model is ________
A) the basic model of how technology changes over time B) the foundation for the classical economic thought of Adam Smith C) one of the dominant explanations of the business cycle D) based on the notion of diminishing marginal product of capital and labor
All of the following are true regarding transfer prices except which one?
A) The transfer price is the internal firm price on an input that input-producing division charges the input-using division. B) The transfer price is the internal firm price on an input that input-using division charges the input-producing division. C) Law in many nations state that a transfer price must equal the price charged to an independent customer. D) Transfer prices can affect the taxes a firm must pay.
In conditions of monopolistic competition,
a. each firm charges the same price. b. there are only two producers. c. there are many firms. d. products are identical.