Rent-seeking activities:
A. have no effect on society's welfare.
B. require resources, and the net result is to reduce total welfare to society.
C. require resources, but the net result is to increase total welfare to society.
D. do not require resources.
Answer: B
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Why is the U.S. putting less emphasis on multilateral and more emphasis on bilateral trade agreements?
What will be an ideal response?
Costs that are spent and cannot be changed in the period of time under consideration are called:
A. fixed costs. B. variable costs. C. total costs. D. marginal costs.
Suppose Chris is offered the following gamble: with probability 0.1 he will win $90, with probability 0.4 he will win $50, and with probability 0.5 he will lose $60. Chris will:
A. accept this gamble if he is either risk neutral or risk-averse. B. accept this gamble if he is risk-averse, but not if he is risk-neutral. C. not accept this gamble if he is risk-neutral. D. accept this gamble if he is risk neutral, but not if he is risk-averse.
The price elasticity of demand can be computed as
A) change in total utility/change in quantity. B) change in price/change in quantity demanded. C) percentage change in quantity demanded/percentage change in price. D) change in quantity demanded/change in price.