Which of the following is an example of in-kind transfer?
a. Social security benefits
b. Food stamps
c. Disability pensions
d. Unemployment compensations
e. Earned income tax credit
QUESTION 2Megan, an analyst in Ronald's team called in sick on a day when 4 projects were due for completion. Ronald divided Megan's work between the remaining six team-members. Which form of governance is being used here?
a. Etiquette
b. Hierarchy
c. Contract
d. Market
QUESTION 3If short-run average total costs are rising in the oil tanker industry, it implies that economies of scale exist in that industry.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 4A profit-maximizing, price-taking firm should cease production whenever:
a. the firm is making a loss.
b. the firm is earning zero economic profit.
c. the price is less than minimum average fixed cost.
d. the price is less than minimum average variable cost.
QUESTION 5The allocations of goods and services from one group in a society to another are called:
a. mutually voluntary exchanges.
b. in-kind transfers.
c. grants.
d. economic rents.
e. transfer earnings.
QUESTION 6Prices play a smaller role in _____, in contrast to other modes of governance like _____ and _____.
a. hierarchies; markets; contracts
b. contracts; hierarchies; markets
c. markets; hierarchies; contracts
d. etiquette; markets; contracts
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