Property rights are important because they:
A. ensure an equal distribution of income.
B. encourage cooperation by improving the chances of mutually agreeable transactions.
C. guarantee that any exchange will make all parties better off than prior to the exchange.
D. allow the government to control how resources are allocated.
Answer: B
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Based on the table below and the principle of diminishing returns to capital, then total packages wrapped when a fourth machine is installed must be less than ________ packages.Number of (Identical) MachinesTotal Packages Wrapped 1110,000213,000315,000
A. 15,000 B. 17,000 C. 16,000 D. 2,000
Third-degree price discrimination is more common in service industries because ________.
A. all firms in these industries have significant monopoly power over price B. low price buyers will find it virtually impossible to resell the products of such industries to high price buyers C. the costs of providing such industries' products to different groups of buyers vary dramatically D. the price elasticity of demand is the same for all groups of buyers in these industries
Suppose oil prices suddenly begin to rise and the Fed announces that the increase in oil prices are not expected to generate excessive inflation
If the Fed is incorrect in its assumption that rising oil prices will not generate excessive inflation and the inflation rate increases before the Fed takes corrective action, then other things equal, this would result in ________ and ________. A) the IS curve shifting to the right; a movement up the Phillips curve B) the IS curve shifting to the left; a movement down the Phillips curve C) the MP curve shifting up; a movement up the Phillips curve D) the MP curve shifting down; a movement down the Phillips curve
Firms may experience diseconomies of scale when
a. they are too small to take advantage of specialization. b. large management structures are bureaucratic and inefficient. c. there are too few employees, and managers do not have enough to do. d. average fixed costs begin to rise again.