The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively conclude:
A. that political corruption has occurred.
B. that logrolling has occurred.
C. that a principal-agent problem has occurred.
D. nothing; the Road Runner Club may have donated to Senator Sly because he already
supported the jogging paths.
Answer: D
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A monopolistically competitive firm is producing an output level at which marginal revenue is greater than marginal cost. This firm should __________ quantity and __________ price to increase profit or reduce losses
a. increase, increase b. increase; decrease c. decrease; increase d. decrease; decrease e. increase; not change
If a monopolistically competitive firm is making profits
A. it can be assured of high profits for all time to come. B. the entrance of new firms decreases the demand facing the firm, thereby reducing profits. C. the entrance of new firms increases the demand facing the firm, thereby reducing profits. D. the entrance of new firms increases costs, thereby reducing profits.
Where did Robert Mugabe get the money he needed for bribes and payoffs?
A. He raised income taxes. B. He printed it. C. He raised estate taxes. D. He raised taxes on corporate profits.
Which of the following describes the role of an entrepreneur?
a. encourages an action by increasing its benefits or reducing its costs b. combines resources of labor, land, and capital to produce goods and services c. dominates a market and excludes others from participating in exchange d. holds the power to control prices, lower unemployment, or reduce inflation