According to economic theory, a person
A) wants to advance his or her own interests and will try to do it rationally.
B) would not generate negative externalities if one has a properly-developed social conscience.
C) acts in a profit-seeking way in the market process and in a social-seeking way in government processes.
D) necessarily behaves as an individualist in markets and as a socialist in government.
A
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"Ricardian equivalence" is the proposition that it does not matter whether government expenditure is financed by taxes or by issuing debt
Indicate whether the statement is true or false
The proposed merger between Staples and Office Depot and the FTC's opposition to it underscore the importance of how a market is defined when assessing the amount of market power possessed by an individual firm
Indicate whether the statement is true or false
The shutdown decision can be restated in terms of producer surplus by saying that a firm should produce in the short run as long as
A) revenue exceeds producer surplus. B) producer surplus is positive. C) producer surplus exceeds fixed cost. D) producer surplus exceeds variable cost. E) profit and producer surplus are equal.
The difference between an international corporation and a multinational corporation is that the international corporation
a. produces in North America while the multinational corporation produces worldwide b. sells its products in North America while the multinational corporation sells its products worldwide c. sells only products while the multinational corporation sells products and services d. produces only in the home country while the multinational corporation produces in two or more countries e. exports goods and services while the multinational corporation imports goods and services