Under what circumstances would government loan guarantees be socially beneficial?
A. When the guarantees socialize losses and privatize gains.
B. When the guarantees stimulate production of goods generating significant spillover costs.
C. When the guarantees promote production of goods otherwise underproduced by the
private sector.
D. When the guarantees increase company profits.
Answer: C
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The United States has a more equal income distribution than many developing economies such as Mexico, South Africa, and Brazil
a. True b. False Indicate whether the statement is true or false
If a firm is inundated by qualified applicants when it advertises a job opening and the firm's quit rate is unusually low, then the firm is probably paying
A. each worker its marginal revenue product. B. above the market wage. C. the market wage. D. below the market wage.
Muhammad is choosing between two ride-sharing services. Ride-sharing service A estimates a wait time of 10 minutes and a total price of $8.00 for the ride to his destination, whereas ride-sharing service B estimates a wait time of only 4 minutes but a total price of $12.00. Assuming that service A generates 2 utils and service B generates 8 utils, which service should Muhammad rationally choose?
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