Advertising can lead to more competition and lower prices for consumers.
Answer the following statement true (T) or false (F)
True
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Which of the following economic lessons should we take from developing country crises in Latin America (and elsewhere)?
A) Only that it is important to choose the right exchange rate regime. B) Only that banking is of central importance in any government. C) The order in which reform measures are implemented are irrelevant. D) It is important to choose the right exchange rate regime and banking is of central importance in any government. E) The order in which reform measures are implemented are irrelevant and banking is of central importance in any government.
People are forced to make choices because of
a. unlimited wants and unlimited resources b. limited wants and unlimited resources c. unlimited wants and limited resources d. limited wants and limited resources e. limited resources are greater than unlimited resources
Dee loves to landscape her yard, but her neighbor Marvin places a low value on his landscaping. When Marvin's grass is neglected and gets long, Dee will mow it for Marvin. This is an example of
a. a situation in which the Coase theorem fails to explain the lawn mowing arrangement. b. an improper allocation of resources. c. a private solution to a negative externality problem. d. an exploitation of a common resource.
Answer the following statements true (T) or false (F)
1. Usury laws are a special case of "price floors" applied to the loanable funds market. 2. Usury laws will result in a shortage of loanable funds and nonmarket rationing in credit markets. 3. Normal profit is considered an economic cost. 4. The payment earned for taking uninsurable risks in owning and running a business is called profit. 5. The risk that the firm's employees might get hurt while working is an example of the uninsurable risks faced by an entrepreneur.