A law that restricts plant closings will
A) make the economy more efficient by slowing down the movement of resources to a more optimal rate.
B) make the economy more efficient by reducing poor decisions on the part of entrepreneurs.
C) prevent resources from flowing to their highest-valued uses.
D) allow profits and losses to provide a signaling function.
C
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Are bank lines of credit to small firms collateralized?
A) All of them are. B) Some of them are, especially if the firm is risky. C) Some of them are, especially if the firm is safe. D) None of them are.
An increase in price:
A. cannot cause a quantity effect. B. cannot cause a price effect. C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price. D. causes an increase in quantity demanded.
In the short run,
a. all of the firm's input quantities, including plant size, become adjustable. b. firms are not constrained by past decisions. c. firms have relatively little opportunity to change production processes. d. all of the firm's current commitments come to an end.
Which of the following is an example of a factor of production?
a. rent b. interest c. land d. Social Security payments