Government mandated safety standard within firms
A) will always decrease efficiency.
B) can increase efficiency by avoiding a prisoner's dilemma outcome.
C) are unnecessary because of asymmetric information.
D) will create unfair competition among firms.
B
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Over long time horizons, the more independent a country's central bank is,
A) the lower the inflation that country experiences. B) the better chance that country has of experiencing hyperinflation. C) the higher the country's unemployment rate tends to be. D) the more politically unstable the country becomes.
Explain whether it is possible for a country to have an absolute advantage in the production of a product without having a comparative advantage in the production of that product
What will be an ideal response?
What is the price of a coupon bond that has annual coupon payments of $85, a par value of $1000, a yield to maturity of 10%, and a maturity of three years?
A) $211.38 B) $898.84 C) $962.70 D) $1255.0
The manager of Steel Works learns of a new technological interdependency between the first stage and the intermediate stage of production. If Steel Works currently contracts with another firm for the first stage of production, which of the following is true?
A) The manager has more of an incentive to integrate backward. B) The manager has more of an incentive to integrate forward. C) The manager has less of an incentive to integrate backward. D) The manager has less of an incentive to integrate forward.