A good that has external benefits associated with its production will be
A) produced at the optimal level.
B) underproduced.
C) overproduced.
D) not produced.
B
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Human capital refers to the
A) accumulated financial capital people have acquired. B) accumulated skill and knowledge of human beings. C) accumulation of money by human beings. D) accumulation of money and equipment used by human beings. E) accumulated equipment used by human beings.
Differentiate between the coordination problem and the incentive problem
What will be an ideal response?
If the marginal cost for Dinky's Donuts to advertise one additional day each week in the local newspaper is $200, then Dinky's Donuts should advertize that additional day
A) until the marginal benefit the company receives reaches zero. B) as long as the marginal benefit the company receives each week is just equal to or greater than $200. C) as long as the weekly marginal cost does not rise. D) only if the marginal benefit the company receives each week is greater than $200 plus an acceptable profit margin.
Compensating wage differentials explain some income differences.
Answer the following statement true (T) or false (F)