When relationship-specific exchange occurs in complex contractual environments, the best way to purchase inputs is through:
A. short-term agency agreements.
B. spot markets.
C. vertical integration.
D. long-term contracts.
Answer: C
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
The above table gives the demand and supply schedules for cat food. If the price is $1.00 per pound of cat food, will there be a shortage, a surplus, or is this price the equilibrium price?
If there is a shortage, how much is the shortage? If there is a surplus, how much is the surplus? If $3.00 is the equilibrium price, what is the equilibrium quantity?
Only at the point of consumer equilibrium does the marginal rate of substitution (MRS) equal the:
a. slope of the budget line. b. slope of the indifference curve. c. price ratio. d. all of these.
A price control always benefits consumers
a. True b. False Indicate whether the statement is true or false