When the maximizing actions of two economic agents are not aligned, these agents face a(n):
A) coordination problem.
B) incentive problem.
C) correspondence problem.
D) objective problem.
B
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Let's assume Ben can produce 3 units of a material good (M) or 3 units of a spiritual good (S) in a day, while Cal can produce 1 M or 2 Ss in a day. Both Ben and Cal can potentially produce a larger combination of M and S
A) if Ben specializes in S and Cal in M and they exchange with one another. B) if Ben specializes in M and Cal in S and they exchange with one another. C) if Ben specializes in both goods and doesn't exchange with Cal. D) only if Cal finds a way to also produce 3 M and 3 S per day.
According to the above table, at a price of $16 per DVD, there is
A) an equilibrium. B) a surplus of 3000 DVDs. C) a shortage of 3000 DVDs. D) a shortage of 1500 DVDs.
In 2008, the Los Angeles Times asked members of the American public whether free international trade has helped or hurt the economy. Of those surveyed,
a. 57 percent said free international trade helped the economy. b. 26 percent said free international trade helped the economy. c. 30 percent said free international trade hurt the economy. d. 16 percent said free international trade hurt the economy.
In the long run, a monopolistically competitive firm
A) earns positive economic profits. B) earns zero economic profits. C) earns negative economic profits. D) can have positive, zero, or negative profits.