If the incentive to take advantage of a conflict of interest is high
A) removing the economies of scope that created the conflict may induce higher costs because of the decrease in the flow of reliable information.
B) then the government must step in to remove the conflict.
C) the costs of non-action in removing the conflict will always be higher than the cost of removing the conflict.
D) firms will always step in and work to remove the conflict.
A
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If inputs into production cannot be substituted for each other but have to be employed in fixed proportions isoquants are straight, downward-sloping lines
Indicate whether the statement is true or false
Which of the following impacts of the terrorist attacks of September 11, 2001, would not show up as a direct loss to GDP?
a. The loss of jobs in the WTC b. The loss of restaurant income near ground zero c. The loss of WTC itself d. The loss of rental income to landlords for buildings near ground zero e. The loss of jobs in the surrounding area.