A lack of well-established property rights is one of the key reasons why markets fail
a. True
b. False
Indicate whether the statement is true or false
True
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If production technological interdependency exists, the ________ integration of the successive production stages ________ production costs.
A) vertical; increases B) vertical; can reduce C) horizontal; can reduce D) horizontal; doubles
In an industry with free entry and exit, positive economic profit:
A. can never occur. B. cannot be sustained indefinitely. C. can be sustained indefinitely. D. indicates a market failure.
When examining the financial status of households, wealth is
A) synonymous with income. B) a flow variable whereas income is a stock variable. C) a stock variable and includes both tangible assets and human capital. D) not as important as income because wealth does not change over time.
At equilibrium, if quantity supplied is 16, quantity demanded
A. is less than 16. B. is 16. C. is more than 16. D. cannot be found without more information.