Compared to a barter economy, using money increases efficiency by reducing
What will be an ideal response?
transaction costs.
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The response of output following a natural disaster includes
A) an increase in output demand and an increase in output supply. B) an increase in output demand and a decrease in output supply. C) a decrease in output demand and an increase in output supply. D) a decrease in output demand and a decrease in output supply.
Between 1800 and 1840, land laws became increasingly ___________ , primarily due to _____________
a. conservative; increases in the price per acre of available land b. conservative; legal limits on the sale of land to farmers c. liberal; the extension of long-term credit by the federal government to land buyers d. liberal; decreases in the minimum acreage required for purchase
If the demand for a good increases, it is likely that the demand for the factors of production used as inputs will:
A. decrease. B. increase. C. stay the same. D. None of these statements is true.
The principal-agent problem:
A. is caused by the principal having imperfect information about the agent. B. is caused by the principal being unable to perfectly observe the actions of the agent. C. arises from an imbalance of information. D. All of these statements are true.