A major drawback to cost plus fixed fee contracts when compared to fixed fee contracts is _____
a. firms have an incentive to overbid
b. the government must monitor the firm's costs
c. the government has an incentive to award bids to the worst companies
d. there is an adverse selection problem
b
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What type of spending is the largest component of the GDP?
A) investment B) net exports C) government purchases D) consumption expenditures
Economic growth can be pictured in a production possibilities frontier diagram by
A) making the production possibilities frontier more bowed out. B) making the production possibilities frontier less bowed out. C) shifting the production possibilities frontier outward. D) shifting the production possibilities frontier inward.
A person that is risk averse
A) exhibits decreasing marginal utility of wealth. B) exhibits increasing marginal utility of wealth. C) always engages in fair bets. D) loves lotteries.
Average income for adults still varies widely across gender and racial groups in the United States, which tells us:
A. race and gender differences cause differences in income. B. discrimination causes differences in income across race and gender groups. C. income is correlated with race and gender. D. All of these are true.