When the ownership of the different stages of production of a commodity lies with different individuals, it becomes difficult to take decisions on capacity expansion because of all the following reasons, EXCEPT:
a. differences in attitudes toward risk.
b. differences in motivation.
c. different degrees of risk exposure.
d. different abilities to hedge themselves.
B
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Bob traps lobsters in Maine and sells them to a restaurant in Mexico. Other things the same, these sales
a. increase U.S. net exports and have no effect on Mexican net exports. b. increase U.S. net exports and decrease Mexican net exports. c. decrease U.S. net exports and have no effect on Mexican net exports. d. decrease U.S. net exports and increase Mexican net exports.
The parity principle stems from
a. a manager delegating a task b. union pay negotiations c. one-way communication d. none of the above
The average sale price of a home in the United States increased from $207,000 to $297,000 from 2000 to 2005. All else equal, we would expect that during the same time the quantity of new homes supplied
A. did not change. B. also increased. C. decreased. D. changed directly in proportion to changes in the population.
Crowding out is the idea that when
A. government spending is increased in one area, it must be decreased in another. B. private spending is increased, it must be decreased in another. C. one entitlement recipient enters a program, another must leave. D. government spending is increased, private spending must decrease.