The activity involved in managing a firm is considered by economists to be
a. land activity
b. labor activity
c. human capital activity
d. entrepreneurial activity
e. nonproductive activity
B
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Both signaling and screening:
A. are effective ways to increase information available to both parties. B. reduce efficiency in the market. C. benefit the sellers but harm the buyers. D. benefit the buyers but harm the sellers.
All of the following are choices for the polluter when faced with additional costs to abate the externality EXCEPT
A) ignore the government regulations.
B) install pollution abatement equipment.
C) reduce the pollution-causing activity.
D) pay the price to pollute.
Keynes believed that changes in autonomous spending were dominated by unstable fluctuations in ________, which are influenced by emotional waves of optimism and pessimism—factors he referred to as "animal spirits."
A) unplanned investment spending B) actual investment spending C) planned investment spending D) autonomous consumer expenditures
A drawback of separating ownership from control by creating a firm is:
A. synergies of team production. B. the principal-agent problem. C. the losses of specialization. D. increased transaction costs.