Which of the following is an important factor in the success of agrarian land reform policies?
(a) the introduction of sharecropping.
(b) the introduction of tenant farming.
(c) farmer training programs.
(d) the introduction of more capital intensive methods.
C
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If a firm makes negative short run profits, it will exit the industry in the long run.
Answer the following statement true (T) or false (F)
The business activities of Firm A confer positive externalities on Firm B, and the business activities of Firm B confer positive externalities on Firm A. If the two firms merged, then
a. their respective markets would move closer to the social optimum. b. their respective markets would move further away from the social optimum. c. total surplus in their respective markets would decrease. d. the merger would serve as an example of a misguided public policy toward externalities.
If a bank's return on equity remains constant, but the ratio of bank assets to bank capital increases:
A. the bank's assets and capital must have increased by the same percentage. B. the bank's return on assets must have decreased. C. the bank's return on assets must have increased. D. the bank must be unprofitable.
The quantity of pencils sold is 1000 at the unit price $0.5. Suppose the price elasticity of demand for pencils by the initial value method is 2, and you would like to increase the quantity sold to 1200. Then the new price for pencils must be:
A. $0.05. B. $0.25. C. $0.30. D. $0.45.