When resources are misallocated, or allocated inefficiently,
A. then it must be the case that the good is a public good.
B. then it must be the case that there is imperfect information in the market.
C. then there must be external costs or benefits in production.
D. market failure occurs.
Answer: D
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Making the distribution of wealth ________ equal is ________
A) more; differences in degrees of specialization B) less; differences in degrees of specialization C) more; assortative mating D) less; assortative mating
A decrease in ________ leads to an equal ________ in the monetary base in the short run
A) float; increase B) float; decrease C) Treasury deposits at the Fed; decrease D) discount loans; increase
As long as a firm can freely dispose of any extra inputs it may have:
A. its production function must slope downward. B. its production function must be concave. C. its production function must slope upward. D. its production function must be convex.
Which of the following are taxed?
a. both corporate profits and dividends shareholders receive b. corporate profits but not dividends shareholders receive c. dividends shareholders receive but not corporate profits d. neither corporate profits nor dividends shareholders receive