Searching the Internet for information to help select a product that is more reliable is most likely to be done by a
A) risk-averse person.
B) risk-neutral person.
C) risk-preferring person.
D) This cannot be determined with the information provided.
A
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Which of the following is a way to reduce agency costs?
a. Change the decision maker b. Transferring information to the decision maker c. Change the decision maker's incentives d. All of the above
The revenue curves that a monopoly faces are different from those that a perfectly competitive firm faces in that the:
A. marginal revenue curve is downward sloping instead of flat. B. average revenue curve is no longer equal to price. C. marginal revenue curve is now flat instead of downward sloping. D. total revenue curve for a monopoly is linear.
People who grew up in the western part of Aquilonia have an accent distinct from people who grew up in the eastern part of the country. People from the west also receive lower wages than people from the east. From this information alone, we can conclude that it is possible that
a. discrimination against people from the west exists. b. people from the east receive compensating differentials. c. people from the west have lower levels of human capital. d. All of the above could be correct.
In a market economy, the government's ability to coerce is beneficial in the following cases, except in:
A. Correcting for positive externalities B. Correcting for negative externalities C. Producing public goods D. Fixing resource prices