Suppose a plaintiff hires a lawyer to represent her in a court case. The lawyer will be paid by the hour. Under this contract,
A) production efficiency is not achieved.
B) the client bears all of the risk.
C) the lawyer has an incentive to lie about his hours worked.
D) All of the above.
D
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Which of the following statements about the marginal rate of substitution is NOT correct?
A) It measures the number of units of the good on the horizontal axis that a consumer must be compensated with to give up a unit of the good on the vertical axis, while remaining on the same indifference curve. B) It is measured by the slope of the indifference curve. C) It decreases in value when moving downward along a typical-shaped indifference curve. D) It is constant for goods that are perfect substitutes.
One of the negative impacts of export subsidy is that:
a. the price of the domestic good increases in the world market. b. the domestic supply of the goods increases more than proportionately than increase in demand. c. the domestic cost of production of the exportable increase. d. it results in a general deflation and hence the domestic producers incur losses. e. it is financed by the taxes paid by domestic consumers and hence it harms them.
When a firm creates negative externalities by polluting, in order to achieve the socially efficient outcome: a. the firm's production should be prohibited
b. the firm's production should be increased and the price of its output should be decreased. c. the firm's production should be increased and the price of its output should be increased. d. the firm's production should be reduced and the price of its output should be increased.
Which of the following equations represents the saving schedule implicit in the given data?
Answer the question on the basis of the following data:
A. S = C - Y d .
B. S = 40 + .4Y d .
C. S = 40 + .6Y d .
D. S = -40 + .4Y d .