Which of the following explains why business owners have a strong incentive to strive for operational efficiency?
a. they recognize that operational efficiency promotes the public interest.
b. since the owners are residual income claimants, increased efficiency will mean a higher income for the owners.
c. if production is not conducted efficiently, the firm will ship jobs and capital out of the domestic market in order to be able to compete effectively.
d. Increased operational efficiency allows the firm to receive government tax breaks.
B
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We observed that the price of a good rises and the quantity purchased also rises. Everything else being equal, it is consistent that
A. the price of a substitute good fell. B. the price of a complement rose. C. income rose. D. costs of inputs increased.
As output increases, the slope of the curve showing the firm's average fixed cost is
A) first negative, then positive. B) first positive, then negative. C) always negative. D) always positive.
Which country will most likely have the fastest economic growth?
a. Country A does not offer public education for children over the age of 10. b. Country B’s government encourages citizens to save and invest a portion of their incomes. c. Country C frequently goes to war with its neighbors in the hopes of acquiring more land. d. Country D’s government has not repaired any of its roads in over a decade.
The interest rates quoted in the market are known as
What will be an ideal response?