Incomplete property rights create transactions costs because
a. any party wanting to use the disputed resource does not have a fixed group with which to bargain.
b. the use of the disputed resource cannot be fully monitored by the government.
c. no one can prevent people from using the disputed resource for free.
d. others may receive a higher value from the disputed resource that those who own the property right to it.
a. any party wanting to use the disputed resource does not have a fixed group with which to bargain.
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Refer to Figure 23-3. Suppose that investment spending decreases by $5 million, decreasing aggregate expenditure and decreasing real GDP from GDP2 to GDP1. If the MPC is 0.8, then what is the change in GDP?
A) -$4 million B) -$5 million C) -$25 million D) -$40 million
A major source of revenues for state and local governments is _____
a. income taxes b. payroll taxes c. intergovernmental revenues d. estate taxation
The existence of discouraged workers: a. increases the size of the labor force, but does not affect the unemployment rate
b. affects neither the size of the labor force nor the unemployment rate. c. may cause the official unemployment rate to understate the true amount of unemployment. d. may cause the official unemployment rate to overstate the true amount of unemployment.
Because firms selling a homogeneous product set price in response to the (perceived) pricing decision of other firms in the Bertrand Model of oligopoly in equilibrium price exceeds marginal cost
Indicate whether the statement is true or false