You are more likely to hire your teenage child to cut your lawn than a landscaping firm
a. since the teenager is paid each time when she finishes and the landscaping firm bills your credit card each month
b. if the teenager has a lower opportunity cost of cutting the lawn than the landscaping firm does
c. because the teenager is less likely to have the specialized tools necessary to complete the job quickly
d. due to the bounded rationality of the diversified landscaping firm
e. when it does not take a substantial amount of time and effort to find a reputable landscaping firm to do the job
B
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Susan operates and owns a small business from home in her own name.? Susan's business is most likely a? _______.
A. partnership B. corporation C. master limited partnership D. sole proprietorship E. limited liability company
When a monopoly is created through government franchise,
a. the firm is assured of above-normal profit b. it is subject to government price regulation c. the firm will discontinue any rent-seeking activity d. price discrimination is forbidden e. the government prevents both entry and exit in the long run
A very hot summer in Atlanta will cause
a. the demand curve for lemonade to shift to the left. b. the demand for air conditioners to decrease. c. the demand for jackets to decrease. d. a movement downward and to the right along the demand curve for tank tops.
Evidence from the Great Recession suggests that the crowding out effect:
A. had a very detrimental effect on private savings. B. was minimal at that time. C. can be quite large in times of recession, and is reinforced with recent research from 2008. D. may hold, although the evidence is somewhat contradictory.