Asymmetric information is a form of
A) market imperfection.
B) regulatory arbitrage.
C) capital market liberalization.
D) financial sector deregulation.
A
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Refer to Table 2-17. What is James's opportunity cost of making a wagon?
A) 2 tricycles B) 1/2 of a tricycle C) 3/4 of a wagon D) 1/2 of a wagon
If a change is a Pareto improvement, then
A) we also achieve Pareto efficiency. B) consumer surplus is maximized. C) it also passes the cost-benefit test. D) the distributional effect is likely to be regressive.
In the monopoly market structure, new firms
a. cannot profitably enter the industry, even in the long run b. may freely enter and leave the industry in both the short run and the long run c. may freely enter and leave the industry in the long run only d. may freely enter and leave the industry in the short run only e. have no incentive to enter the industry, even if economic profits are present
Diminishing returns occurs because:
A. not enough people have jobs. B. one of the inputs in the production process is fixed. C. consumers don't buy enough of the products produced. D. two people have not satisfied their self-interests.