The Pension Benefit Guaranty Corporation, which protects employee pensions for participating firms, is not a well-designed insurance program
Indicate whether the statement is true or false
T Participation by firms in the PBGC insurance program is voluntary and adverse selection operates in that the least strong firms participate while the strong firms can be better off by insuring themselves.
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The proposition that if property rights are well defined and there are no transaction costs, an efficient allocation of resources will result even if externalities exist, is known as __________________
a. transaction costs b. Hartwick's rule c. the Coase Theorem d. Coase's Law e. the Hayes Theorem
Which of the following best describes a "how much" decision?
a. should i drive to work or ride by bike? b. Should I rent a movie or watch a baseball game on television? c. Should I attend graduate school or immediately enter the labor force? d. should I buy a third hot dog?
At the output rate at which diminishing marginal product begins, a firm will experience
A) constant average total costs. B) increasing average fixed costs. C) increasing marginal costs. D) decreasing average variable costs.
At ________ levels of output, the economy can expand with little or no increase in the overall price level because firms likely hold excess labor and capital, and production can be increased without causing input prices to increase.
A. full capacity B. high C. full employment D. low