If there are no unexploited opportunities for individuals in a particular market, then one can conclude that:
A. government regulation has been successful.
B. a socially optimal outcome has been achieved.
C. the market is not in equilibrium.
D. the market is in equilibrium.
Answer: D
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Since the 1940s, the demand for labor has expanded equally for both skilled and unskilled workers
Indicate whether the statement is true or false
If GDP in year 1 is the same dollar amount as the GDP in year 2, does it follow that Real GDP in year 1 is the same as Real GDP in year 2?
A) Yes, since prices must necessarily be the same in the two years. B) No, since equal GDP figures do not account for population. C) No, since prices may not be the same in the two years. D) Yes, since equal GDP figures do account for a change in the quality of goods produced in the two years. E) none of the above
According to the following graphs, what is Y1?
The price of Y is $15 per unit.
A. 20 B. 12 C. 25 D. 15 E. none of the above
Tying the salaries of top managers to the firm's stock price or to the profitability of the firm allows a firm's board of directors to
A) increase asymmetric information. B) reduce the principal-agent problem. C) eliminate moral hazard. D) avoid disclosing financial statements to investors.