Which of the following statements are true regarding profit maximizing firms?
a. They will attempt to maximize the difference between total revenues and total costs.
b. They will use more of a resource as long as the MRC is greater than the MRP
c. They will only produce where MRP is positive and MRC is negative.
d. none of the above.
a
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In which of the following cases does the tragedy of the commons occur? I. Cattle grazing on private ranches. II. Catching lobsters off the coast of Florida. III. Raising salmon on salmon farms. IV. Using legal services provided by the courts
A) I only B) II only C) II and III only D) I and IV only
In the coordination failure model, the "good" equilibrium is characterized by a
A) higher real interest rate and a higher price level than the "bad" equilibrium. B) higher real interest rate and a lower price level than the "bad" equilibrium. C) lower real interest rate and a higher price level than the "bad" equilibrium. D) lower real interest rate and a lower price level than the "bad" equilibrium.
Which of the following is not a lesson that history has taught about the development of physical and electronic currencies:
a. The private sector usually finds a way to circumvent these taxes and restrictions. b. Commerce usually follows community. c. To gain widespread trust and usage, currencies do not have to be backed by precious metals. d. All of the statements are positive lessons. None is false.
Which of the following is an example of a nonmarket transaction?
a. a vacation in Hawaii b. a bribe paid to a politician c. income from illegal gambling d. swapping one good for another good