The problem of scarcity
a. arises only in poor countries.
b. exists because the price of goods is too high.
c. exists because of limited resources.
d. will eventually be solved by better planning.
QUESTION 2The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are unwilling to offer discounts
b. the Vice President does not want to negotiate aggressively enough
c. the sales staff want to negotiate too aggressively
d. the Vice President is less willing to offer discounts to make the sale
QUESTION 3Moral hazard and adverse selection are both examples of
a. the principal-agent problem.
b. externalities in consumption.
c. efficiency in markets.
d. perfect information.
e. asymmetric information.
QUESTION 4Median voter decisions may not yield efficient allocations of resources because:
a. votes are allocated differently than income.
b. externalities may cause private and social costs to diverge.
c. free riders will cause too few public goods to be produced.
d. the median voter may not be the same as the mean voter.
QUESTION 5The conflict between the Vice President of Marketing and her sales staff arises because
a. the sales staff are unwilling to offer discounts
b. the Vice President want to negotiate more aggressively
c. the sales staff want to negotiate too aggressively
d. the Vice President is more willing to offer discounts to make the sale
Quick Reply
