Rent-seeking activity by firms
a. often wastes economic resources.
b. increases economic efficiency.
c. continues even when an industry is in long-run competitive equilibrium.
d. increases the total amount of economic rent available.
a
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Using hindsight to judge whether buying insurance was a good idea or not:
A. is the only way to properly measure the true cost of the insurance and its benefit. B. is not a good idea; you have to measure the decision considering the information available at the time. C. can prove that a good decision at the time was really not worth it. D. is commonly used by people who wish to buy insurance in the future.
If the price of parsley is $1, and the price remains unchanged no matter how much parsley is produced, then the AR curve
a. is an upward-sloping straight line b. is a downward-sloping straight line c. lies above the MR curve d. lies below the MR curve e. is a horizontal line
A vertical line has a slope of
a. infinity. b. zero. c. undefined. d. 1,000.
A closed shop is one in which
A) a union is prohibited. B) some members belong to the union while others do not. C) belonging to a union is a condition of employment. D) the union is a co-manager of the day-to-day operations of the firm.