One assumption that economists often make about people is that they are ________
A) risk-neutral
B) risk-averse
C) risk-seeking
D) rent-seekers
A
You might also like to view...
Daphne actually values her home at $250,000 but claims she values the home at $300,000. In an eminent domain situation, the government would pay Daphne ________ for her home
A) $250,000 B) $275,000 C) $300,000 D) the fair market value
A futures contract is a contract in which the seller agrees to provide a given good to the buyer on a predetermined future date at an agreed-upon price.
Answer the following statement true (T) or false (F)
The presence of a negative externality is likely to give rise to significant market failures when: a. property rights are not well-defined
b. property rights are well-defined. c. there are few victims of pollution and few polluters. d. transaction costs are relatively low.
Managers at Concord Construction have determined that the firm’s revenues do not cover the firm’s average variable costs. Which term describes the situation at Concord Construction?
a. The shutdown point b. Allocative inefficiency c. Diseconomies of scale d. The price taking point