The simpler a production process is,
a. the greater the cost of production
b. the greater the transaction cost of using markets
c. the more likely a firm will use the market to organize production
d. the more likely a firm will used centralized control to organize production
e. the more likely that transaction costs increase by using centralized control of production
C
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Mainstream economists believe that Keynesian economists overstate the effect of the multiplier effect. Which of the following statements would mainstream economists NOT consider to be accurate?
A) A fiscals stimulus does not provide a 'free lunch' but does 'crowd out' private consumption expenditure and investment. B) A fiscal stimulus is a vital tool to fight recession and depression due to the multiplier effect. C) Effects of a fiscal stimulus are small and short lived. D) A fiscal stimulus results in bigger government, lower potential GDP, and slower real GDP growth. E) Effects of a fiscal stimulus are incapable of working fast enough to make a difference.
Grape juice prices increased by 20 percent in 2007. Suppose in response grape growers did not increase or decrease their grape production. The elasticity of supply is best described as
A) perfectly inelastic. B) perfectly elastic. C) inelastic. D) elastic.
Refer to the scenario above. If the colleagues had decided on a fairness penalty of $5,000 before committing the crime, ________
A) this game will not have a Nash equilibrium B) this game will have multiple Nash equilibria C) this game will have multiple dominant strategy equilibria D) this game will have a unique Nash equilibrium
Which of the following is the correct way to calculate total cost?
A. TVC +TFC B. TR - TFC C. ATC รท q D. TR - TVC