A homeowner, frustrated with his next-door-neighbor's refusal to mow his lawn, decides he wants to purchase the house from his neighbor and rent it to a more conscientious person, but his neighbor refuses to sell. In this case,
A) eminent domain would likely be used to reduce transactions costs.
B) eminent domain would likely be used to reduce the holdout problem.
C) eminent domain would not likely be used.
D) eminent domain would likely be used because this transaction would increase cooperative surplus.
C
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in the marginal propensity to consume?
A) A B) B C) C D) D
If aggregate planned expenditures equal real GDP, then
A) unplanned inventory changes equal zero. B) inventories decrease below their planned levels and businesses increase their production. C) inventories decrease below their planned levels and businesses decrease their production. D) inventories increase above their planned levels and businesses decrease their production. E) there is no equilibrium level of real GDP.
When retail bicycle dealers advertise and perform warranty repairs but do not deliver the personal selling message that Schwinn has designed as part of the marketing plan but cannot observe at less than prohibitive cost, the manufacturer has encountered a problem of ____
a. reliance relationships b. uncertainty c. moral hazard d. creative ingenuity e. insurance reliance
Normal profit
A) is when economic profits are zero. B) is the profit that competition will allow. C) is the opportunity cost of capital. D) all of these choices.