Under what conditions will a firm's long-run producer surplus exceed their economic rents?
A) The firm requires land resources in the production process.
B) The firm has access to specialized tools or technology that other firms do not own.
C) The firm has access to knowledge or human capital that other firms do not own.
D) The firm is operating in an imperfectly competitive market.
D
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What is the primary problem in comparing income inequality in the US with income inequality in other countries?
One possible reason for slower growth in developing and transition countries is
A) capital may not be directed to its most productive use. B) strict accounting standards are too stringent for the banks to meet. C) the weak link between government and financial intermediaries. D) the lack of adverse selection and moral hazard problems.
In Figure 3-3 above, equilibrium income is
A) 400. B) 640. C) 666.67. D) 1,000. E) 2,400.
The concepts of exogeneity, strict exogeneity, and predeterminedness
A) are defined in such a way that strict exogeneity implies exogeneity. B) can be used interchangeably. C) are defined in such a way that exogeneity implies strict exogeneity. D) correspond to endogeneity, strict endogeneity, and lagged endogenous variables.