A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has.
A. reduced the scope of the lemons problem.
B. engaged in a creative response to regulation.
C. shared the gains and pains of regulation.
D. become a captured regulator.
Answer: B
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A firm increased its production and sales because the firm's manager rearranged the layout of his factory floor. This is an example of
A) positive technological change. B) inspired management. C) investment in human capital. D) economies of scale.
An import tariff will cause the terms of trade of the ________ country to ________ and will ________ the country
A) importing; improve; benefit B) exporting; improve; benefit C) importing; suffer; harm D) exporting; improve; harm E) importing; improve; harm
The circular flow model assumes:
a. businesses and households own the factors of production. b. businesses own the factors of production. c. government owns the factors of production. d. households own the factors of production. e. firms, households, and the government own the factors of production.
Patents are currently granted for a period of 20 years in the United States. Do you think that time period is too long or too short? Explain your reasoning