Firms emerge when transaction costs of using the market are less than the cost of hierarchical control
a. True
b. False
B
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When conducting open market operations, at what price is it willing to buy or sell securities?
A) at the price agreed upon by the Federal Open Market Committee B) at the price agreed upon by the Board of Governors C) at the price set by the Fed chair D) at whatever price is necessary to carry out its open market operations
Private costs of an economic activity exceed social cost when external benefits are created
a. True b. False Indicate whether the statement is true or false
Which statement most accurately defines economic growth?
a. a sustained increase in a country’s production of services and goods b. how much an economy produces at its potential output c. a nation’s natural rate of output of goods and services d. the application of new knowledge that creates or improves products
The Dango describes
A. covert collusion in the Japanese construction industry. B. a Korean business arrangement whereby only firms with insider connections may enter an industry. C. a bribe paid by colluding business firms to get government contracts in Asia. D. the price set by the price leader in Eastern European oligopolies.