If a nation wants to get the most out of its resources, each productive assignment should be carried out by those persons who
What will be an ideal response?
have a comparative advantage in the productive activity.
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Bonzo's success in the Easter Basket business has attracted more characters into the Easter Basket industry. If Easter Basket making is a constant cost industry, Bonzo
a. and the new entrants can all expect to be enjoying his current level of profits. b. can expect his profits to be driven down to zero as new competitors push the price down. c. can expect to have to shutdown his operation in the face of new competition. d. will have to increase his price to make up for the loss of any sales to new competitors.
Mobutu Sese Seko was President of ________
A) Canada B) Zaire C) Cote d'Ivoire D) Tajikistan
In a moral hazard problem, the agent is unable to perfectly monitor the principal's behavior so the principal applies less effort than the agent considers desirable
a. True b. False Indicate whether the statement is true or false
Since a firm in a monopolistically competitive market faces a
a. downward-sloping demand curve, it will always operate with excess capacity. b. downward-sloping demand curve, it will always operate at its efficient scale. c. perfectly elastic demand curve, it will always operate with excess capacity. d. perfectly inelastic demand curve, it will always operate at its efficient scale.