When there is a resource for which property rights are not well defined and there is a difference between private costs and social costs, then all but which of the following is a way to close the difference?
A) the free market system
B) taxation
C) subsidization
D) regulation
A
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The statement "Managers with a college education earn $18 an hour while ski instructors who did not complete college earn $10" is
A) a political statement. B) a positive statement. C) a normative statement. D) an ethical statement.
A firm uses two factors of production. Irrespective of how much of each factor is used, both factors always have positive marginal products which imply that
A) isoquants are relevant only in the long run B) isoquants have negative slope C) isoquants are convex D) isoquants can become vertical or horizontal E) none of the above
The M1 definition of money includes ______.
a. savings deposits b. stocks c. traveler’s checks d. time deposits
In a constant-cost industry, an increase in price causes:
A. some firms to exit the industry. B. quantity supplied to remain constant. C. some firms to enter the industry. D. price controls.