Economic theory can predict or explain behavior
A) in the private but not in the public or government sector of society.
B) most successfully in areas where behavior is largely guided by foresight and planning.
C) only when behavior aims at maximizing net monetary revenue.
D) when people behave selfishly rather than in the public interest.
B
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If voters are rationally ignorant, then the interest of the bureaucracy to maximize its budget will result in an oversupply of a public good
Indicate whether the statement is true or false
For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because
A) there is not good factor substitution in a monopsony. B) the wage rate offered the newest employee must be paid to all workers. C) the industry will be a closed shop. D) a normal rate of return must be paid to the owner.
It is against the law in the United States for one person to hold positions on more than one board of directors at a time
a. True b. False Indicate whether the statement is true or false
Firms will have a greater incentive to cheat on a collusive agreement when
a. the number of sellers is relatively small b. total market sales are small c. the market is perfectly competitive d. demand is rapidly changing e. prices are known to all firms in the market