By being responsible for their actions
A) moral hazard becomes asymmetric information.
B) employees are being given a property right.
C) employees find it easier to free ride on the performance of others.
D) the stock market is selling the claims of agents.
B
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Which of the following will increase the supply of a product?
A) an increase in the price of the product B) an increase in the demand for the product C) an increase in the number of sellers D) a decrease in the demand for the product E) an increase in the price of inputs
The government's chief forecasting gauge for business cycles is the:
a. unemployment rate. b. real GDP. c. personal income index. d. index of leading indicators.
If factor prices decrease:
a) a firm will move down along its long-run average cost curve only. b) a firm will move down along both its long-run and short-run average cost curves. c) both the long-run and short-run average cost curves will shift downward. d) there will be no change in the cost curves in the long run. e) there will be a downward shift in the long-run average cost curve but not in the short-run average cost curve.
Under which of the following situations would a monopolist increase profits by lowering price (and increasing output):
A. if it discovered that it was producing where MC = MR. B. if it discovered that it was producing where its MC curve intersects its demand curve. C. if it discovered that it was producing where MC < MR. D. under none of these circumstances because a monopolist would never lower price.