When negative externalities exist, the private market equilibrium represents a
A) market price which is too low and a market quantity which is too low.
B) market price which is too low and a market quantity which is too high.
C) market price which is too high and a market quantity which is too low.
D) market price which is too high and a market quantity which is too high.
Answer: B
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One major criticism of giving foreign aid to developing countries is:
A. the recipients of aid oftentimes have nebulous goals that are not measurable. B. there is little to no accountability once the funds have been dispensed. C. much of the money may be embezzled or otherwise funneled away from its intended recipient. D. All of these are major criticisms of foreign aid.
The threat of a strike
a. can serve as an incentive for labor and management to reach an agreement b. destroys incentives for labor and management to reach an agreement c. is usually not taken seriously because employers know the workers will suffer during a strike d. is not taken seriously unless management expects to suffer e. is not taken seriously if public safety is at risk
What are the Euler Equations?
A. another name for the objective function B. another game for the first order conditions, defining optimal choices C. equations relating the optimal choice of interest rates to other prices D. both A and B, but not C
In the long run, the perfectly competitive firm
A) does not have a shut down price. B) earns only a normal profit. C) may produce even if it suffers a loss. D) earns an economic profit.