"Cheap talk" is considered cheap because
A) communications via phone or email these days has a cost that is close to zero.
B) a firm can say anything, but may actually do something different.
C) the cost of talking is far outweighed by the gains to be made in coordinating efforts.
D) firms avoid the costs of hiring lawyers.
B
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Which of the following examples best describes the Law of Diminishing Marginal Benefit?
A) If a seller of notebooks in a perfectly competitive market charges above the market price, his profit decreases. B) With each additional pen Jill buys, her willingness to pay for another pen decreases. C) Each additional unit of ice cream that John consumes gives him more and more satisfaction. D) If the weather gets cold, the demand for ice cream will fall.
What is the real-balance effect of an increase in the price level?
What will be an ideal response?
As a result of technology spillovers: Taxes may move us closer to the efficient output level in such industries. a. Other members of society bear external costs
b. Too much production takes place in the high technology areas. c. Taxes may move us closer to the efficient output level in such industries. d. None of the above are true.
Discuss the criticisms leveled against the Aid to Families with Dependent Children program