The reason firms often choose sales maximization as a goal is because
a. that is where profits are maximized.
b. it is impossible to maximize profits.
c. firms are managed and owned by different groups of people with different goals.
d. owners believe setting price/output to maximize profits is unfair to consumers.
c
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When interest rates in the bond market rise,
A) adverse selection problems increase. B) adverse selection problems are mitigated. C) moral hazard problems increase. D) moral hazard problems are mitigated.
Why might the tax multiplier be smaller than the expenditure multiplier? Under what circumstances might the reverse be true?
What will be an ideal response?
In the 1800s, public health boards were primarily concerned with _____
a. sanitary conditions in frontier areas b. sanitary conditions in large cities c. establishing public hospitals d. regulating private hospitals
Which of the following is not listed in the book as a reason to study economics?
A. to be an informed citizen B. to understand society C. to learn a way of thinking D. to learn how to make lots of money