Consider a manufacturing operation that uses specialized machinery and labor to produce its output. In this case, the input that is not fixed in the short run is labor
Indicate whether the statement is true or false
TRUE
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With respect to the insurance market, what is adverse selection?
A) Adverse selection refers to the actions people take before they purchase an insurance policy. B) Adverse selection refers to the actions people take, after they purchase an insurance policy, that make the insurance company worse off. C) Adverse selection refers to people who purchase one type of insurance policy when they would have been better off purchasing a different policy. D) Adverse selection refers to the situation in which a person purchasing an insurance policy takes advantage of knowing more about his health than the insurance company knows.
When young students are hungry, they can be disruptive and inattentive in class. Thus, providing lunch to students has external benefits. The figure above represents the market for school lunches before and after government vouchers are issued
a. What is the unregulated private market equilibrium? b. What is the efficient quantity of lunches? c. What is the amount of the voucher necessary to move the economy to the efficient number of lunches? d. When vouchers are used, what is the dollar price of the lunch that suppliers receive and what is the dollar price that consumers pay when the voucher is used?
The Solow residual helps explain growth that derives from
a. increasing the size of the labor force. b. increasing the size of the capital stock. c. increasing the capital-labor ratio. d. anything except increases in the size of the labor force or the capital stock.
Which of the following does not reflect a positive rate of time preference?
a. Concert-goers yell and scream when the stage is still dark an hour after the concert was scheduled to start. b. Borrowers have to pay interest on loans. c. A dieter, allowed three ounces of butter per day, spends the whole allotment on her toast at breakfast. d. A dieter, allowed three ounces of butter per day, promises himself some new clothes if he can break the habit of spending the whole allotment on his toast at breakfast. e. A student stays up late every night for a week to finish her term paper two months before it is due.