If the principal has full information, production efficiency without supervision can occur with
A) a fixed fee rental contract.
B) a profit-sharing contract.
C) an incentive-compatible contract.
D) All of the above.
D
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Which of the following is not a source of technological advancement for a producer?
A) more efficient physical capital B) outsourcing some aspect of production C) higher skill level of managers D) better trained workers
In the market for used cars we have 10 sellers, willing to sell at the prices of $1000 . $2000 . $3000 . $4000 . $5000 . $6000 . $7000 . $8000 . $9000 . $10000 . If the equilibrium price in the market is $2500, how many cars would be sold?
a. 1 b. 2 c. 3 d. 4
In order to avoid the free-rider problem, which of the following goods is best provided by the government and paid for with tax dollars?
a. Automobiles. b. Lighthouses. c. Bread. d. Prescription drugs. e. Windows.
John Maynard Keynes and his followers argued that the Great Depression was primarily the result of:
a. excessive government spending. b. large budget deficits. c. the perverse monetary policies of the Fed. d. insufficient aggregate spending on goods and services.