If we assume perfect information, perfect mobility of resources, and no transactions costs, then there is little need for firms

a. True
b. False


A

Economics

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What will be an ideal response?

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Which of the following cost functions will exhibit both decreasing and increasing marginal costs?

A) a cubic cost function B) a quadratic cost function C) a linear cost function D) All of the above

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If the U.S. Treasury is forced to sell bills and bonds to the U.S. public to finance deficits, this may ________ the price of bonds and ________ the interest rates on the bonds.

A. drive up; drive up B. drive down; drive up C. drive down; drive down D. drive up; drive down

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Of all Medicaid spending, ________ goes for the health needs of the elderly.

A. 65% B. 13% C. 20% D. 50%

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