Because government agencies lack the kind of competition found in the marketplace, they also can lack:
a. profits.
b. efficiency.
c. cohesion.
d. accountability.
b. efficiency.
When government provides goods or services directly, we might expect it to do so with less efficiency than private firms—except in certain cases where the government agency may compete directly with private firms.
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A recession occurs when real GDP decreases for at least 6 months
Indicate whether the statement is true or false
In the short run, a perfectly competitive firm determines its profit-maximizing or loss-minimizing output by
a. producing at full capacity. b. equating price and marginal revenue. c. equating marginal revenue and marginal cost. d. equating average revenue and average cost.
Many believe that fairness calls for higher income taxes on the wealthy. Using one of the "Ideas for Beyond the Final Exam," explain how higher taxes on the wealthy will affect output
The labor demand curve of an imperfectly competitive seller is downward sloping
A. solely because of diminishing marginal utility. B. solely because of diminishing returns. C. because of both diminishing returns and the necessity to lower price to sell more output. D. solely because product price must be reduced to sell more output.