There are many firms in an oligopolistic market.
Indicate whether the statement is true or false
QUESTION 2Which of the following is the best example of an investment in human capital?
a. the purchase of an industrial development bond
b. a graduate student who completed 24 semester units in economics last year
c. the purchase of a lawn mower by a homeowner
d. an unemployed stockbroker who drives a cab in order to pay his bills
QUESTION 3Each of the following can explain why an order could not been carried out as intended, EXCEPT:
a. incompetence.
b. opportunism.
c. impossibility.
d. obedience.
QUESTION 4Monopolies do not last in the long-run.
Indicate whether the statement is true or false
QUESTION 5Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by worker in a job employing low-skilled labor
b. the purchase of company stock by a worker
c. a summer internship at a law firm filled by someone attending law school
d. payments into a retirement pension plan by a skilled laborer
QUESTION 6Tiffany needs to assess the market risk in order to decide when to launch a new product. He decides to delegate the task of risk assessment to Joe who is a competent employee of the firm. Which of the following conclusions can be drawn from this?
a. Joe has the required tools and resources to carry out the order.
b. Joe is above Tiffany in the hierarchy of this firm.
c. The chances that Joe's assessment will be accurate are very high.
d. Tiffany is well equipped to analyze the information he passes on to Joe.
QUESTION 7Firms in perfect competition sell differentiated products.
Indicate whether the statement is true or false
QUESTION 8Economists refer to expenditures on training, education, and skill development designed to increase the productivity of an individual as:
a. overhead expenditures.
b. investments in human capital.
c. marginal revenue product.
d. investments in social capital.
QUESTION 9_____ transfer the necessary information within a firm and bind the recipients to take certain actions.
a. Contracts
b. Decision-makers
c. Owners of information
d. Orders
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