The problem the agent faces when deciding which agent to hire is called
a. Adverse selection
b. Moral hazard
c. Both of the above
d. None of the above
a
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Use the following table to answer the next question. All figures below are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$240$244250250260256270262280268290274300280310286320292If gross investment is $12 billion, the equilibrium level of real GDP will be
A. $270 billion. B. $280 billion. C. $260 billion. D. $290 billion.
Economists assume that rational people do all of the following except
A) undertake activities that benefit others and hurt themselves. B) respond to economic incentives. C) use all available information as they act to achieve their goals. D) weigh the benefits and costs of all possible alternative actions.
Market economies are distinguished from other types of economies largely on the basis of
a. the political affiliations of government officials. b. the process by which government officials are elected or appointed. c. the ways in which scarce resources are allocated. d. the number of retail outlets available to consumers.
The slope of the ________ is -MPL/MPK.
A. isoquant B. marginal utility curve C. total utility curve D. isocost line