Political and social desires to increase the "quality of life" in the U.S. led to an increase in the federal funding of public libraries, television and radio as well as increases and broadened uses of federal lands, waters and parks

Tom & Jerry are running Hanna Barbera's lemonade stand as two profit centers. Tom makes the lemonade while Jerry sells it. Jerry argues that Tom is transferring the lemonade to him priced too high, which forces him to charge the customers a high price, losing sales. Does the decision maker have the incentive to make a good decision?

a. Yes, because it increases the division profit b. No, because it decreases division profit c. Yes, because it does not affect division profit d. No, because it increases company-wide profit

Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?

a. Total resource earnings are the same in both markets. b. Total resource earnings are greater in market A. c. Total resource earnings are greater in market B. d. There is more economic rent in market A. e. There is derived demand in market A, but not in market B.