Private parties may choose not to solve an externality problem if the transaction costs are large enough
a. True
b. False
Indicate whether the statement is true or false
True
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Who are the members of the Financial Stability Oversight Council?
What will be an ideal response?
Jordan and Jennifer are musicians in New Orleans. Ezra is a musician thinking about moving to New Orleans. Which of the following statements is correct?
a. The wage needed to keep Jordan and Jennifer in the New Orleans music industry in the long run will be lower than the wage needed to keep them in the industry in the short run. b. The costs of entering the New Orleans music industry are sunk costs for Jordan, Jennifer, and Ezra. c. The costs of entering the New Orleans music industry are sunk costs for Ezra but not for Jordan and Jennifer. d. The wage needed to induce Ezra to enter the New Orleans music industry will be lower than the wage needed to keep him in the industry after he enters. e. The costs of entering the music industry in New Orleans are sunk costs for Jordan and Jennifer, but not for Ezra.
Which of the following is an example of human capital?
a. the comfortable chair in your dorm room where you read economics texts b. the amount you get paid each week to work at the library c. the things you have learned this semester d. any capital goods that require a human to be present to operate
In Figure 8.4, the difference between total costs and variable cost is:
A. average total cost. B. fixed cost. C. total costs are positive when output is zero implying fixed costs. D. All of these.