If social returns to the production of a good are greater than private returns, then we can conclude that relative to the social optimum, the good will be
A) over produced and under priced.
B) under produced and over priced.
C) over produced and over priced.
D) under produced and under priced.
E) None of the above.
B
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Which of the following utility functions has the same MRS as U(q1,q2 ) = q1 q2?
A) q11/2 q21/2 B) q1 + q2 C) q11/2 + q21/2 D) (q11/2 + q11/2 )2
With free entry
A) economic profits are possible over the long run. B) economic profits are possible but only over limited amounts of time. C) economic profits are not possible. D) the cost of capital will not be covered.
One of the consequences of allowing wages to fall in the United States has been growing wage inequality
a. True b. False Indicate whether the statement is true or false
Explain why wage rates might rise at Joe's Quik-Print Shop if Joe replaces his aging copy machines with state-of-the-art copy machines.
What will be an ideal response?