Explain why a government may select an inefficient allocation
What will be an ideal response?
A government may decide the equity of an allocation makes it preferable to all possible efficient allocations.
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What is the most important characteristic of monopolistic competition? How do firms behave differently from perfect competitors?
What will be an ideal response?
Compared to the short run, the long-run market supply curve is
a. less elastic b. equally elastic c. more elastic d. always negatively sloped e. None of the answers is correct.
The government office in charge of collecting official employment statistics is the:
A. Bureau of Industry and Security. B. Bureau of Economic Analysis. C. Bureau of the Census. D. Bureau of Labor Statistics.
If you have a business opportunity that is pretty much a sure thing that will require you to borrow $1,000,000, but will return to you $200,000 a year in profit for ten years, this is
A. an unwise investment regardless of interest rates. B. an investment which depends on the interest rate that must be paid on the loan. C. a wise investment regardless of interest rates. D. an investment which will be more attractive when the interest rate is high.