The market will:
a. Always provide the optimal mix of output.
b. Overproduce goods that yield external benefits.
c. Produce an optimal amount of goods that generate external costs.
e. Underproduce goods that generate external benefits.
Ans: d. Underproduce goods that generate external benefits.
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The ratio of the median income of college-to high school-educated workers is called the _____
a. college income premium b. college income differential c. college income benefit d. college income compensation e. education income gap
Which of the following workers would be most likely to work fewer hours as a result of a wage increase?
a. farm worker b. surgeon c. lifeguard d. bartender
The ease with which an asset can be converted to money is its
A) liquidity. B) adaptability. C) accessibility. D) rigidity.
The contestable markets hypothesis differs from the requirements for perfect competition in that
A. the latter requires many competitors and the former only one … who fears competition. B. the latter doesn't require freedom of entry and the former does. C. the former requires many competitors and the latter only one … who fears competition. D. the former doesn't require freedom of entry and the latter does.