The value of the marginal product is equal to the marginal revenue product under perfect competition in the product market because:
a. price is equal to average revenue.
b. price is equal to average cost.
c. marginal revenue is equal to marginal cost.
d. price is equal to marginal revenue.
e. average revenue is equal to average cost.
d
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Which of the following is true about an individual's choice of insurance assuming state-independent tastes?
A. Full insurance will be chosen from a full menu of actuarily fair insurance if tastes are risk averse. B. No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk averse. C. No insurance will be chosen if the menu of insurance contracts is actuarily unfair and tastes are risk-neutral. D. (a) and (b) are true. E. (a) and (c) are true. F. (b) and (c) are true. G. All of the above. H. None of the above
Which of the following policy measures created an Office of Credit Ratings at the SEC with its own staff and the authority to fine credit-rating agencies and to deregister an agency if it produces bad ratings?
A) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 B) Sarbanes-Oxley Act of 2002 C) Global Legal Settlement of 2002 D) Gramm-Leach-Bliley Act of 1999 E) Riegle-Neal Act of 1994
In the United States, the inflation rate during the past 25 years
A) has, on average, been negative. B) has generally been below 5%. C) has averaged 0%. D) has increased at its fastest pace in history.
If marginal output is rising it is possible to have
A. diminishing returns. B. negative returns. C. both diminishing returns and negative returns. D. neither diminishing returns nor negative returns.