Tracking systems reduce classroom segregation. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
Segregation in public schools has declined since the early 1980s. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
The cartel of oil-producing nations (OPEC) once controlled about 80% of the world petroleum market, but OPEC’s market share has declined to about half of its former level. This outcome is a good example of how firms may have: A) relatively high short-run monopoly power that strengthens in the long run. B) relatively high short-run […]
Date: September 9th, 2020
Explain what the principal-agent problem is, and explain evidence of its existence in hospitals in the United States. What will be an ideal response? ANSWER The principal-agent problem is an example of asymmetric information in the market place. This problem occurs when one person’s welfare (the principal) depends upon what another person does (the […]
Date: September 9th, 2020
Len is putting in a new swimming pool. He can either heat his pool with natural gas or with solar power. If he chooses solar power it will cost him more today, but he will recover these costs over the next 7 years in savings on his natural gas bill. The solar heater is expected […]
Date: September 9th, 2020
Asymmetric information problems arise A) in horizontally integrated firms, but not vertically integrated firms. B) in vertically integrated firms, but not horizontally integrated firms. C) in both vertically and horizontally integrated firms. D) only in firms that do not have the advantage of either horizontal or vertical integration. E) only when a single firm is […]
Date: September 9th, 2020
When a drug company develops a new drug it is granted a ________ making it illegal for other firms to enter the market until the ________ expires. A) franchise; franchise B) copyright; copyright C) government license; government license D) patent; patent ANSWER D
Date: September 9th, 2020
Which factors determine the firm’s elasticity of demand? A) Elasticity of market demand and number of firms B) Number of firms and the nature of interaction among firms C) Elasticity of market demand, number of firms, and the nature of interaction among firms D) none of the above ANSWER C
Date: September 9th, 2020
In 2003-2004, over one-third of Black and Hispanic students attended schools that were 90% or more minority; over two-thirds attended schools that were 50% or more minority. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
David Ellwood suggests the explanation for low employment rates among poor families is Flawed Character. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
