Firms that anticipate hold-up, choose organizational or contractual forms
a. To give each party both the incentive to make relationship-specific investments
b. To give each party both the incentive to ignore sunk costs
c. To give each party both the incentive to reduce investments in reputation
d. To give each party both the incentive to make non-specific investments
a
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Which of the following contributed to the turn-around in the U.S. government budget from a surplus in the early 2000s to record deficits by the end of the decade?
A. An increase in tax revenues because of a recession. B. An increase in business saving. C. An increase in government purchases on homeland security and wars. D. An increase in household saving.
Mr. Clooney inherited a sum of $30,000 in 1990. If the price index for 1990 was 100 and the price index for 2014 is 188, the value of the money he inherited in 2014 dollars is ________
A) $45,200 B) $56,400 C) $38,800 D) $48,000
Which of the following is the most likely result from an increase in a country's government budget surplus?
a. higher interest rates b. lower imports c. lower net capital outflows d. lower domestic investment
Which of the following policy obstacles could occur because it is difficult to know how market participants will respond to specific policies?
A. Design problems. B. Goal conflicts. C. Implementation problems. D. Measurement problems.