Whenever a regulatory system is set up, individuals or firms being regulated will figure out ways to get around these regulations. This is referred to as the law of:
A. demand.
B. unintended consequences.
C. diminishing returns.
D. diminishing control.
Answer: D
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In the circular flow model, profits are considered to be
A) a cost of doing business. B) equal to zero, or else the circular flow would be out of balance. C) a subtraction from the Gross Domestic Product (GDP). D) a form of interest payment.
In a __________ plan, employees may choose __________
A) defined benefit; the assets they invest in B) defined benefit; the benefits received during retirement C) defined contribution; the assets they invest in D) defined contribution; the benefits received during retirement
Refer to Figure 8.1. Holding other variables constant, an increase in the skill level of workers will result in a
A) shift from curve D1 to curve D2. B) shift from curve D2 to curve D1. C) movement from point A to point B. D) movement from point B to point A.
Which of the following actions has the best potential for experiencing economies of scope?
A) producing a product that has appeal to a wider segment of the market B) producing computers and software C) producing spaghetti and soft drinks D) producing cars and trucks