Which of the following explains why managers of government agencies have little incentive to achieve operational efficiency?
What will be an ideal response?
Public-sector managers need not fear bankruptcy when operational efficiency is not achieved, seldom receive personal benefits if they find ways to improve the efficiency of their operations, and typically do not face competition.
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Sandy's current consumer surplus for candy is 20. Candy is a normal good for her. When her income increases and the price of candy remains unchanged, her consumer surplus will
A) increase. B) decrease. C) remain the same. D) Not enough information.
A common contractual precommitment strategy is ________.
A) a meet-or-release clause B) price visibility C) a most-favored-customer clause D) a meet-the-competition clause
The difference between the effect of an import quota when quota rights are given away and the effect of a tariff is that
a. only the tariff results in a higher domestic price b. only the quota decreases the amount of goods imported c. the decrease in producer surplus is smaller with the quota d. under a quota, part of the decrease in consumer surplus is redistributed to foreign producers; under a tariff, it is redistributed to the domestic government e. under a tariff, part of the decrease in consumer surplus is redistributed to foreign producers; under a quota, it is redistributed to the domestic government
In reality, there is not one labor market, but many
a. True b. False Indicate whether the statement is true or false