Which of the following types of economic regulation is most likely to encourage firms to inflate their costs?
A) price cap regulation
B) rate of return regulation
C) cartel regulation
D) earnings sharing and price cap regulation
B
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A firm will continue to purchase and use land until the:
A) value of marginal product of land equals the price of land. B) value of average product of land equals the marginal product of land. C) value of marginal product of land equals the marginal product of labor. D) value of marginal product of land equals the marginal product of capital.
Refer to above figure. If OmL1 workers are employed in manufacturing then what is the marginal productivity of labor in agriculture?
What will be an ideal response?
Because the seller of a used car has more information than the buyer:
A. the problem of bargaining imbalance occurs. B. the problem of adverse selection occurs. C. the problem of information overload occurs. D. the problem of moral hazard occurs.
The effect of a change in net taxes on the quantity of real GDP demanded equals the resulting shift in the consumption function times _____
Fill in the blank(s) with the appropriate word(s).