The incentive for analysts in investment banks to distort research increases when
A) revenues from brokerage commissions increase.
B) the potential revenues from underwriting greatly exceed brokerage commissions.
C) the potential brokerage commissions greatly exceed revenues from underwriting.
D) revenues from underwriting decrease.
B
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Although some economists believe network externalities are important barriers to entry, other economists disagree because
A) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of economies of scale. B) they believe that most examples of network externalities are really barriers to entry caused by the control of a key resource. C) network externalities are really negative externalities. D) they believe that the dominant positions of firms that are supposedly due to network externalities are to a greater extent the result of the efficiency of firms in offering products that satisfy consumer preferences.
Selling a good at a lower price in a foreign country than in the home country is an example of
a. an export subsidy. b. dumping. c. an export barrier. d. None of these.
If consumption of education creates an external benefit, then in order to increase efficiency relative to the outcome determined by private decisions,
a. more education must be produced. b. the same amount of education must be produced, and the price should be lower. c. less education must be produced, and the price should be higher. d. less education must be produced, and the price should be lower. e. less education must be produced at the same price.
"Full employment" is said to exist when the unemployment rate equals
A) zero. B) the cyclical unemployment rate. C) the structural unemployment rate. D) the natural unemployment rate.