Which of the following statements is TRUE about the relationship among external, internal and social costs?
A) Social costs will always be higher than external costs.
B) Social costs will always be lower than internal costs.
C) Internal costs will always be higher than external costs.
D) Internal costs will never equal external costs.
Answer: A
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The set of tangencies between isoquants and isocosts is the firm's
a. production function. b. returns to scale. c. output maximization curve. d. expansion path.
If actual inflation is less than expected inflation, which of the following will be true?
A) The Phillips curve will be a vertical line. B) Real wages will fall. C) The unemployment rate will fall. D) Real wages will rise.
A Lorenz curve that is perfectly straight indicates
A) that society is very rich. B) that a small portion of the population accounts for most of the income. C) that a large portion of the population accounts for most of the income. D) complete income equality.
In the developing country of Sixsigma, most likely
a. resource owners tend to supply their resources where are most valued b. almost all workers are employed in service industries c. links to family or clan are totally unimportant d. children are expected to choose occupations as different as possible from their parents' occupations e. family businesses resist growth to avoid having to hire people from outside the family