An informal understanding about the quality of product components supplied is a key to the relationship between most companies and their suppliers. This is a good example of
A. an adverse selection problem.
B. a principal-agent conflict resolution.
C. an explicit contract.
D. an implicit contract.
Answer: D
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Assume that society is operating on its concave production possibilities frontier. As more and more units of the good on the horizontal axis are produced,
a. more and more total resources are employed in the two industries combined b. larger and larger amounts of the good on the vertical axis must be sacrificed c. fewer and fewer total resources are employed in the two industries combined d. more and more units of the good on the vertical axis will be produced e. smaller and smaller amounts of the good on the vertical axis must be sacrificed
An increase in equilibrium price and a decrease in equilibrium quantity could be caused by a(n)
a. increase in resource prices b. increase in demand c. increase in supply d. favorable shift in tastes and preferences e. improvement in production technology
Are Social Security payments included in GDP? Explain why or why not
What will be an ideal response?
Increases in government spending are consistent with supply-side economic policies.
Answer the following statement true (T) or false (F)