Firms that seek to avoid hiring lazy workers that assert they are hardworking are trying to avoid
A) adverse selection.
B) moral hazard.
C) screening.
D) signaling.
A
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Which of the following is an example of capital?
a. pizza ovens b. bulldozers c. a college education d. carpentry skills e. all of the above
The effect of a government subsidy in a market where a positive externality is present is:
A. to increase surplus. B. to increase efficiency. C. to make consumers internalize the external benefit. D. All of these statements are true.
Answer the following statement true (T) or false (F)
1) Producing a good in the least costly way is known as allocative efficiency. 2) A market that achieves productive efficiency is producing the quantity of goods most desired by society. 3) A market that is achieving allocative efficiency must also be achieving productive efficiency. 4) A government tax per unit of output reduces supply.
When compared to the profit-maximizing price and quantity supplied, an average-cost pricing policy for a natural monopoly causes the price the monopolist charges to ________ and the quantity it sells to ________.
A. increase; decrease B. decrease; decrease C. decrease; increase D. increase; increase