The franchising of fast-food restaurants would be an example of how a private business:
A. Overcomes market information problems
B. Solves the moral hazard problem in insurance
C. Expands the limits of the Coase theorem
D. Corrects the problem of externalities
A. Overcomes market information problems
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Which of the following is most accurate?
a. African Americans were generally hurt economically relative to whites during WW II. b. African American education rates are now about the same as those of whites. c. The poverty rate for African Americans is about 300% larger than the rate for whites. d. The average household income of African Americans is currently about 90% of whites'.
In the long run in monopolistic competition,
a. economic profits are zero. b. P = MC. c. P = minimum ATC. d. firms have an incentive to leave. e. the demand curve is tangent to the MC curve.
Which of the following would unambiguously increase consumption spending?
a. an increase in real disposable income coupled with a decrease in real wealth b. an increase in real wealth coupled with more pessimistic expectations regarding future income c. a decrease in real disposable income coupled with a decrease in the interest rate d. a decrease in the interest rate coupled with an increase in real wealth e. increased pessimism regarding future income coupled with an increase in the interest rate
The assumption of short-run price stickiness implies:
a. that we must adjust nominal quantities for changes in inflation. b. that we must always allow for unexpected inflation. c. that expected inflation is zero and nominal quantities are the same as real. d. a balanced budget.