The classical economists believe that prices and wages quickly adjust to keep the economy operating at full employment
a. True
b. False
Indicate whether the statement is true or false
True
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All group decisions are Pareto superior moves
a. True b. False
Which of the following would increase the incentive for inventors to seek out new inventions?
a. Receiving a larger share of social benefits from inventions b. Receiving all private benefits from inventions c. Sharing intellectual property rights for inventions d. Obtaining government funding to develop new inventions
In 1992, the bilateral agreement of the United States with the European Union regarding the subsidies for production of civil aircraft included that
A. subsidies could only be in the form of loans at a market rate of interest with a short repayment period. B. marketing subsidies could be provided to the firm, but production subsidies could not. C. indirect government support is limited to 4 percent of a firm's civil aircraft sales. D. direct government support for new airplane development is limited to one-tenth of the total development costs.
A company finds that at its present level of production, MR = MC at $14, MC = AVC at $15, and MC = ATC at $20. Your advice to the firm regarding its short-run operations is
A) to continue production, as it is earning an economic profit of $1 per unit. B) to continue production, as it is earning an economic profit of $6 per unit. C) to shut down. D) to continue production at a loss.