Relative to a monopolized industry, a competitively organized industry is more likely to produce
A. more output, charge higher prices, and earn economic profits.
B. more output, charge lower prices, and earn economic profits.
C. more output, charge lower prices, and earn only a normal profit.
D. less output, charge higher prices, and earn economic profits.
Answer: C
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Which of the following is NOT true of moral hazard?
A) It would not exist in a world of perfect information. B) It arises because borrowers typically know more than lenders. C) It describes a lender's problem of distinguishing the good-risk applicants from the bad-risk applicants. D) It describes a lender's problem in verifying borrowers are using their funds as intended.
The financial crises of the 1990s have conclusively proved that globalization causes financial crises
a. True b. False Indicate whether the statement is true or false
A useful theory must
A. apply to every conceivable situation. B. be broadly applicable. C. be agreed upon by all economists. D. not be able to be refined.
If a firm hires 312 workers it will produce 4,522 units of output. If it hires 313 workers it will produce 4,786 units of output. The marginal physical product of labor equals
A. 4,786. B. 264. C. 1. D. 313.