When monopolistically competitive firms earn ________ economic profits, other firms ________ an industry in the long run.
A. positive; enter
B. zero; exit
C. negative; enter
D. zero; enter
Answer: A
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Deciding to engage in tax evasion requires consideration of all of the following, except the
A. probability of being caught. B. probability of conviction if caught. C. probability of winning extra money. D. costs of defending oneself.
For an investment in a hybrid auto like the Toyota Prius, the car owner typically pays a higher initial price for the car but enjoys lower fuel costs for the life of the vehicle
The authors note that consumers tend to use discount rates that are too high when computing the net present value of these investment decisions. If this is true, consumers would tend to place too ________ emphasis on the initial purchase price and too ________ emphasis on the future fuel savings when computing the net present value of the investment. A) much, much B) little, much C) much, little D) little, little
Effective signals
a. convey useful information from informed parties to uninformed parties. b. impose little or no cost on the signaler. c. cannot be conveyed accurately when there is an information asymmetry. d. raise the quantity sold but reduce the price sellers receive.
When some people are better informed than others and the imbalance affects the choices they make, economists say there is