Which of the following is true about a hierarchy?
a. It primarily acts as a residual claimant.
b. It is a group of individuals who make decisions.
c. It is an alternative to independent specialization of individual workers.
d. It is a group of individuals who hold shares of the company and are entitled to dividends.
C
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Which of the following would reduce the supply of computers?
a. higher wage rates for the workers that assemble the computers b. a technological improvement that lowers the cost of producing the computers c. a reduction in the price of computer chips used to produce the computers d. All of the above would reduce the supply of computers.
A car mechanic knowing more about what's wrong with your vehicle than you do is best explained by which of the following concepts:
a. Asymmetric information b. Adverse selection c. Availability bias d. Bounded rationality
Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A. Both the labor force and the population increased. B. Winter storms cause factories in the north to be shut down for several weeks. C. Unusually good weather causes the wheat crop to be larger than normal. D. Government spending increased causing aggregate demand to increase.
Answer the following questions true (T) or false (F)
1. In reality, because few markets are perfectly competitive, some loss of economic efficiency occurs in the market for nearly every good or service. 2. Market power in the United States causes a huge loss of economic efficiency. 3. A profit-maximizing monopoly produces a lower output level than would be produced if the industry was perfectly competitive.