What is gained when people engage in specialization and trade?
A) Specialization and trade allow people to consume outside their individual production possibilities frontiers.
B) Specialization and trade allow people to consume at a point on their production possibilities frontiers.
C) Specialization and trade allow people to produce outside their individual production possibilities frontiers.
D) Specialization and trade allow people to consume inside their production possibilities frontiers.
E) There are no gains from specialization and trade.
A
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When a negative externality exists, the private market produces
A) products at a low opportunity cost. B) less than the economically efficient output level. C) products at a high opportunity cost. D) more than the economically efficient output level.
An imperfectly competitive firm has the following demand curve: Q = 100 - 2P. What is marginal revenue equal to when P = 40?
What will be an ideal response?
If the random walk theory is correct, prudent investors could choose their stock portfolio by
A. throwing darts at the newspaper’s financial page. B. spending money to consult a stock forecaster. C. spending time analyzing past stock performance. D. not investing in stocks at all since price behavior is completely erratic.
The set of collectively held beliefs, values, and norms among the members of a firm that influence individual behavior is referred to as
A) network values. B) horizontal values. C) implicit contracts. D) corporate culture.