Economic profit that stems from entrepreneurship reflects
a. market power achieved through the use of public policy that restricts entry into a market.
b. the ability of some individuals to recognize and undertake economically beneficial projects that have gone unnoticed by others.
c. windfall gains due to unanticipated changes in weather.
d. the influence of special interest groups on the market process.
B
You might also like to view...
To reduce Agency problems, executive compensation should be designed to
a. be paid baased on quarterly sales b. create incentives so that managers act like owners of the firm c. avoid making the executives own shares in the company d. be an increasing function of the firm's expenses e. all of the above
The price for used cars is well below the price of new cars of the same general quality. This is an example of:
a. The Degree of Operating Leverage b. A Lemon's Market c. Redeployment Assets d. Cyclical Competition e. The Unemployment Rate
If the slope of a linear function changes with no change in the Y-intercept
a. the graph shifts either up or down in a parallel way. b. the graph remains unchanged. c. the graph rotates about its X-intercept. d. the graph rotates about its Y-intercept.
A good is rival in consumption if:
a. the supplier of that good can prevent people who do not pay from consuming it. b. the supplier of that good cannot prevent people who do not pay from consuming it. c. the same unit of the good cannot be consumed by more than one person at the same time. d. there is no free-rider problem.