Monopolistically competitive firms fail to fully realize their economies of scale.
Answer the following statement true (T) or false (F)
True
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Does low human capital cause poverty or does poverty cause low human capital?
A. The causality works both ways. B. Low human capital causes poverty, not the other way around. C. Poverty causes low human capital, not the other way around. D. There is no causal link between low human capital and poverty.
A recessionary gap is defined as
a. an economy that is operating above its full-employment capacity b. an economy that is operating at full-employment capacity c. the amount by which aggregate expenditure exceeds the aggregate expenditure level needed to generate equilibrium national income at full employment without inflation d. the amount by which aggregate expenditure falls short of the level needed to generate equilibrium national income at full employment without inflation e. the path an economy takes out of a depression
A shortage occurs when price is higher than the market equilibrium
a. True b. False Indicate whether the statement is true or false
Suppose twenty neighbors share a park. One of the neighbors, Al, leaves trash in the park. This bothers the other neighbors. According to Coase's Theorem, assigning the property rights to the park to Al
A) will achieve the socially optimal quantity of trash. B) will result in zero trash being dumped in the park. C) might still not achieve the social optimum since coordinating the other nineteen neighbors can be costly. D) is unfair.