Private firms can hardly produce a public good profitably because of:
A. Liability rules and lawsuits
B. The free-rider problem
C. Shortages and surpluses
D. Moral hazard and adverse selection
B. The free-rider problem
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Unlike a sole proprietorship, a corporation's shareholders
A) own the firm and directly manage it as well. B) do not own the firm but directly manage it. C) own the firm but do not directly manage it. D) do not own the firm and do not directly manage it.
The Marshall Plan (1948–51) brought about the immediate integration of Europe into international markets
Indicate whether the statement is true or false
Consider a portfolio with three stocks, each with the same value. The three stocks have expected returns of 15%, 25%, and 50%. The expected return of this portfolio is
a. 25%. b. 30%. c. 50%. d. 90%.
Over the last 50 years, has the ratio of household production to gross domestic product in the United States increased or decreased? Consider the effect of the increased number of women working outside the home, and the effect of advances in technology
in household production such as microwaves, coffee makers, power tools, etc. What will be an ideal response?