Which of the following statements are true regarding profit maximizing firms?
a. They will attempt to maximize the difference between total revenues and total costs.
b. They will use more of a resource as long as the MRC is greater than the MRP

For a mortgage lender that makes mortgage loans to borrowers, which one of the following would be an example of moral hazard?

a. After the loan has been made, individuals become careless with their finances b. Individuals most likely to default are the ones most likely to apply for the loan c. Lenders performing a credit check on all potential borrowers d. None of the above

The "incidence of a tax" is the term used to indicate

a. the responsibility for collecting the tax. b. who actually bears the tax burden. c. who the tax is initially levied on. d. the regressive rate structure of the tax.