The incentive for managers of a government-operated firm (for example, a state university or the U.S. Post Office) to operate efficiently will be
a. low because all government workers are lazy.
b. low because there are no residual claimants to monitor and institute cost-reducing measures.
c. high because government employees and officials will be less concerned with personal gain.
d. high because voters can easily detect those who are to blame for inefficiencies and replace them.
B
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The price effect is smaller when there:
A. are fewer firms. B. is more demand. C. is less demand. D. are more firms.
The graph below shows the Chamberlin model. The profit-maximizing price is at
A. 04. B. 05. C. 03. D. 02.
GDP per capita is a relatively good measurement of:
A. the distribution of income. B. purchasing power. C. household production. D. the standard of living.
Do deficits lead to inflation?
What will be an ideal response?