The existence of an externality is proof that there is a
a. market failure
b. undervaluation of a good
c. overvaluation of a cost
d. property dispute
e. free-rider problem
A
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The idea behind the Phillips curve is that ________
A) tight labor markets lead to inflationary pressures B) when the unemployment rate is low, wages will increase C) when firms raise wages to attract new workers, prices will also increase D) all of the above E) none of the above
If the production function exhibits diminishing marginal product, the total cost function gets steeper as the quantity of output increases
a. True b. False Indicate whether the statement is true or false
The long-term financing dimension of financial management deals with the selection, issuance, and management of long-term debt and equity.
a. true b. false
The budget line shows
a. different levels of consumption associated with different levels of incomes. b. the affordable combinations of goods and services you can buy with your income. c. different levels of inputs needed to produce specific level of output. d. none of the above.