"Since the wind and the flowing rivers can take away industrial waste without charge, polluting is a profitable activity even when people are seriously harmed downwind or downstream, unless environmental regulators stop it." This statement is
a. false if the property rights of downwind or downstream individuals are protected.
b. true if the property rights of industrialists are enforced.
c. never true.
d. always true.
A
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Hundreds of speculators conclude in May that the coming summer's corn crop will be much lower and that the November corn price will be consequently much higher than most people expect
When they act on their beliefs in the futures market, they would strive to ________ corn futures, which would tend to ________ the price of corn futures. A) sell; reduce B) sell; raise C) buy, reduce D) buy; raise
In the above figure, the amount of tax revenue is
A) $2,000. B) $4,000. C) $6,000. D) $8,000.
Jewelers are willing to hold large inventories of diamonds
a. because the demand for diamonds is large and growing b. because that minimizes the fixed cost of producing diamond jewelry c. because, given monopoly control of the market for diamonds, they are confident that the price of diamonds will not plummet rapidly d. because, given monopoly control of the market for diamonds, they are confident that the price of diamonds will rise rapidly e. because that is what their customers expect them to do
If firms were teams then there would be a problem of
A) free-riding. B) spontaneous order. C) market-based management. D) internal externalities.