When the owner runs the business:
A. there is not a principal-agent problem.
B. he does not receive the full benefit nor the full cost of any decision.
C. he has only limited liability for the actions of the business.
D. he does not bear the full cost of a bad decision.
Answer: A
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Rent seeking through lobbying
A) reduces deadweight loss. B) uses up resources that result in additional costs to society. C) results in perfect price discrimination. D) results in perfectly competitive industries.
The difference between actual and natural unemployment rates is called ________ unemployment
A) turnover B) mismatch C) cyclical D) measured
In 2010, the poorest 20 percent of families in the United States population earned approximately ____ percent of the before-tax total income. (Fill in the blank.)
a. 1 b. 4 c. 9 d. 12
One necessary condition for effective price discrimination is:
a. difference in the price elasticity of demand among buyers. b. two or more markets with easy resale of products between them. c. identical tastes among buyers. d. a single, homogeneous market.