The following is NOT an example of a potential monitoring solution to moral hazard
a. a pre-hire typing test for clerical employees
b. closed circuit TVs throughout a warehouse
c. GPS tracking devices in repair trucks
d. listening in on call center conversations
a
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Refer to Figure 4-1. If the market price is $2.00, what is Arnold's consumer surplus?
A) $0.50 B) $1.00 C) $1.50 D) $3.00
Which firm has higher marginal costs?
a. Jim's Production b. Competitor's production c. They both have the same fixed costs d. Need more information
What would be a way for the Federal Reserve to slow down the economy when it is growing too quickly or is inflationary?
A. print more money B. buy back government bonds on the open market C. sell more government bonds D. encourage the stock market
The above figure shows the market for steel ingots. An externality can be seen because
A) the social marginal cost exceeds the private marginal cost. B) the private marginal cost exceeds the social marginal cost. C) the optimal quantity of steel is zero. D) not enough steel gets produced by the competitive market.