If the marginal cost curve is rising, which of the following must be true?
A. Total costs must be rising.
B. The average total cost curve must be above the marginal cost curve.
C. The average total cost curve must be below the marginal cost curve.
D. The average total cost curve must be rising.
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. In the principal-agent problem, assigning full liability to the agent gives no incentive for the principal to avoid damages. 2. Transaction costs arise when property rights are nonexistent. 3. If all parties can enter into negotiations, social optimum is achieved with or without a Pigou tax. 4. A free-rider problem occurs when people can share in the benefits of an activity without being forced to contribute to its costs. 5. Court decision involving torts are irrelevant to social welfare.
Discuss the rationales for foreign financing of investment in developing actions and explain how developing countries benefit from international capital investment
What will be an ideal response?
Which of the following has been the most likely effect of the Fed's credit policy?
A) Banks and other financial institutions have taken more time to recover from the 2008-2009 financial meltdown. B) The scope of asymmetric information problems in the banking industry has reduced. C) The money multiplier and the link between the money supply and the economy have become unstable. D) The federal funds rate and the discount rate have dropped to negative levels.
Relative poverty
A) has been eliminated in the United States. B) will always be with us. C) has never existed in the United States. D) can be eliminated in the next 20 years.