Long-term contracts are NOT efficient if:
A. the contractual environment is simple.
B. specialized investments are unimportant.
C. a firm engages in relationship-specific exchange.
D. managers shirk.
Answer: B
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Use the following table to answer the question below. Jorge's Production Possibilities SchedulePounds of Green BeansPounds of Corn03202024040160608080 0Jorge's production possibilities schedule demonstrates that
A. green beans have a trade-off with corn, but corn does not have a trade-off with green beans. B. there is no trade-off between corn and green beans. C. both corn and green beans require a trade-off. D. green beans do not have a trade-off with corn, but corn has a trade-off with green beans.
If the price of gasoline increases significantly, then we'd expect the demand curve for large trucks and SUVs to:
A. Shift to the right B. Shift to the left C. Become upward-sloping D. Not shift, but there will be a movement along that demand curve
In an effort to clean up the amount of sulfates introduced into the atmosphere the government has ruled that all polluters install smoke stack scrubbers on their smoke stacks and mandated a pollution limit on the amount of sulfates per parts of air
that may be legally emitted into the atmosphere. Suppose some of the polluters have found a more efficient way to eliminate the pollution. How will this discovery change the amount of sulfates emitted into the atmosphere?
In economics, technology only refers to the development of new products
Indicate whether the statement is true or false