If property rights are not well enforced, all of the following are likely to occur except
A) a significant number of people will be willing to risk their funds by investing them in local businesses.
B) economic efficiency will be reduced.
C) an economy will produce inside its production possibilities frontier.
D) fewer goods and services will be produced.
A
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An advance in technology shifts the production function upward and shifts the labor
A) demand curve leftward. B) supply curve leftward. C) demand curve rightward. D) supply curve rightward.
Depositors have a strong incentive to show up first to withdraw their funds during a bank crisis because banks operate on a
A) last-in, first-out constraint. B) sequential service constraint. C) double-coincidence of wants constraint. D) everyone-shares-equally constraint.
The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are poor because they have ________ transitory income, causing them to
have an unusually ________ saving ratio. A) positive, high B) positive, low C) negative, high D) negative, low
Collusion:
A. occurs only when no dominant strategy is present. B. is a cooperative outcome between competitors. C. is observed, but economists cannot theoretically model it. D. is a theoretical concept that is rarely observed.