When regulators identify with the special interests of the industry they regulate, this behavior conforms with the
A. lemon market hypothesis.
B. rate-of-return hypothesis.
C. capture hypothesis.
D. share-the-gains, share-the-pains hypothesis.
Answer: C
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Marginal physical product measures the increase in total output that results from a one-unit increase in an input.
Answer the following statement true (T) or false (F)
"Net exports" is defined as
A) GDP minus imports. B) exports plus imports. C) GDP minus exports. D) exports minus imports.
A prisoner's dilemma can be described as a situation in which
a. a decision maker is uncertain about the potential punishment for something done in the past b. an individual decision maker finds it in his best interest to pursue a course of action that can lead to a less than desirable outcome for the group c. producers act so as to avoid maximizing profits because of government retaliation d. individual firms seeks to maximize their own profits with no regard for the group e. the summation of individual demand curves creates an inelastic demand curve facing the industry
If average fixed cost and average variable cost are summed together, the result is: a. total revenue
b. total profit. c. total cost. d. average total cost.