Suppose a new contracting environment that requires less specialized investments is considered. This new contract will result in:
A. a decrease in the marginal benefit and a longer optimal contract.
B. an increase in the marginal benefit and a longer optimal contract.
C. an increase in the marginal benefit and a shorter optimal contract.
D. a decrease in the marginal benefit and a shorter optimal contract.
Answer: D
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Which of the following transactions would be included in Gross Domestic Product (GDP)?
A. the purchase of a used car B. the purchase of a used textbook from a friend C. the purchase of 100 shares of Microsoft stock D. the purchase of new tires by a family to replace worn out tires on the family car
Monetarists believe that the private sector of our economy is inherently ______.
Fill in the blank(s) with the appropriate word(s).
Suppose Joe Rich owns his own company and does not pay himself a salary. This means the salary he could have earned in alternative employment is considered an implicit cost for the firm
a. True b. False Indicate whether the statement is true or false