Many economists believe that a nationalized firm tends to be inefficient because
a. it sets P = MC
b. it makes economic profits
c. tax revenues cannot be used to subsidize the firm
d. managers have strong incentives to excel
e. the government cannot go bankrupt
E
You might also like to view...
Two key consequences of asymmetric information are adverse selection and moral hazard. Define each concept, provide one example of each, and explain how the two concepts differ
What will be an ideal response?
Monetarists contend that the channels of monetary influence in Keynesian structural models are too ________ defined, ________ the importance of monetary policy
A) broadly; exaggerating B) broadly; understating C) narrowly; understating D) narrowly; exaggerating
All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory. B) It assumes demand is known with certainty. C) It accounts for seasonal changes in demand. D) It assumes demand is spread evenly over a time period.
If Taiwanese workers can produce all goods at lower wages than American workers, then
a. Americans can still gain by trading with Taiwan. b. Americans can only lose if they import from Taiwan. c. Taiwan can only lose if it trades with America. d. there are no gains from trade that are possible in this case. e. Americans should be self-sufficient.