Heterogeneous inputs in a perfectly competitive market will cause the industry to face ________ costs because as the firm produces a larger quantity, it is forced to use ________ productive inputs.
A. increasing; less
B. decreasing; less
C. increasing; more
D. decreasing; more
Answer: A
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A change in financial technology that reduces the need to hold cash balances ________ the demand for money and ________ the equilibrium nominal interest rate
A) increases; raises B) decreases; lowers C) increases; lowers D) decreases; raises E) decreases; does not change
What is the major advantage of the corporate form of business organization?
A) Its owners have limited liability. B) Its owners have unlimited liability. C) Its profits are not taxed. D) Its profits are taxed twice.
In an economy that relies on barter, trade requires a double-coincidence of wants
a. True b. False Indicate whether the statement is true or false
Which of the following statements explains why it is so difficult for governments to provide the optimal quantity of a public good?
A) Governments have no way of collecting payments for public goods B) Public goods are non-rival but excludable, which makes them costly to produce C) The marginal cost of providing a nonrival good is usually too high for the price conscious consumers D) The marginal benefit of each individual user must be known, and it is often overstated by individuals