Which of the following factors explains why managers of government agencies have little incentive to achieve operational efficiency?
a. Public-sector managers have no fear of bankruptcy when operational efficiency is not achieved.
b. Public-sector managers face fierce competition.
c. It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it.
d. All of the above explain why government agencies have little incentive to be efficient.
A
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Price discrimination is never perfect because:
A) it increases consumer surplus. B) it is regulated by the government. C) it lowers profits of producers to an extent. D) it is impossible to know consumers' willingness to pay.
Suppose an economy has the following characteristics: 100 people in the noninstitutional population; 60 people employed; 20 people not in the labor force. How many people are unemployed?
A) 20 B) 40 C) 60 D) 80 E) 100