When individuals and businesses are permitted to trade freely over a larger market area,
a. wages will decline to the level of the poorest country in the region.
b. the monopoly power of business firms will increase.
c. they will be able to produce a larger output and consume a more diverse bundle of goods.
d. businesses will be able to earn higher profits, but the income levels of individuals will decline.
C
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Wealth decreases as a result of ________ and/or ________.
A. positive saving; capital gains B. negative saving (borrowing); capital gains C. negative saving (borrowing); capital losses D. negative saving (borrowing); crowding out
Subprime mortgages are
A) mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgages. B) mortgages issued to borrowers with flawed credit histories. C) mortgages which are bundled together by financial institutions and sold to investors. D) government-backed mortgages issued by Fannie Mae and Freddie Mac.
What is the Haig-Simons definition of income? Are there any practical problems in implementing the Haig-Simons definition?
What will be an ideal response?
Monopolists can earn positive economic profits in the long run because they are more productively efficient than perfectly competitive firms
a. True b. False