Health Bars markets their snack bars as gluten and nut allergy free. If consumers with gluten or nut allergies become sick due to consuming gluten or nuts in Health Bars snacks, the managers of Health Bars face heavy legal fees. As a result, managers of Health Bars are more likely to produce all of their inputs rather than buy them due to issues with ________.
A) transportation costs
B) economies of scale
C) quality control
D) trade secrets
C) quality control
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An increase in net taxes (taxes paid by the private sector to the government less transfer payments and interest payments made by the government to the private sector) will:
A. increase private saving. B. increase public saving. C. decrease public saving. D. reduce investment in new capital equipment.
Which of the following statements about economic resources is true?
A) Economic resources include financial capital and money. B) All economic resources are man-made. C) Economic resources are also called factors of production. D) Economic resources are used only by businesses.
If workers accurately predict the rate of inflation, is there a short-run trade-off between inflation and unemployment, as predicted by the Phillips curve? Why or why not?
What will be an ideal response?
The user cost of capital is negatively related to ________
A) the real rate of interest B) the depreciation rate C) the expected rate of change of the real price of capital D) the tertiary log of the nominal price of capital