For a "superstar" to emerge, it must be the case that
a. it is possible to supply the good or service that the superstar produces at low cost to every customer.
b. some customers are willing and able to pay large sums of money to enjoy the good or service provided by the superstar.
c. the superstar has a natural monopoly on his or her good or service.
d. the superstar can become sufficiently popular to earn income from advertisements.
a
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Which of the following is NOT a benefit to an individual purchasing a mutual fund?
A) reduced risk B) lower transactions costs C) free-riding D) diversification
The table above shows four methods for producing 10 computer desks a day. Of the four methods, ________ technologically inefficient
A) B and C are B) B is C) D is D) A and B are
If a firm finds that the wage rate (W) is less than the value of marginal product (VMP), then to maximize its profit the firm should hire
A) less labor, which will increase the VMP. B) more labor, which will decrease the VMP. C) no more or less labor, because profits are greatest when W < VMP. D) more labor, because hiring more labor will increase both W and VMP until they are equal.
Based on the conventional view of fiscal policy and potential GDP in the long run, explain what happens to each of the following if the government runs a budget deficit:
a. the supply of loanable funds to the private sector b. long-term real interest rates c. the capital stock d. the investment rate e. potential GDP