The problem of overfishing in waters that are commonly owned can be solved when the government determines the total amount of fish that can be removed from a given area during each fishing season. Then the fishermen
A. will externalize their private costs to the government.
B. will lower their private costs to fish.
C. will not be able to fish.
D. can trade their rights (shares) to fish or not.
Answer: D
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According to the law of diminishing marginal utility, the marginal utility curve is ____
a. vertical b. flat. c. upward sloping. d. downward sloping.
In the short run, there are large and persistent deviations between actual exchange rates and exchange rates predicted using purchasing power parity because of:
a. Discretionary fiscal policy. b. Widely different inflation rates in the two nations. c. Very different real GDP growth rates in the two nations. d. Many goods and services in the two nations' price indices are not traded internationally. e. All of the above.
The WTO replaced the GATT in
A. 1900. B. 1945. C. 1995. D. 1960.
Which of the following statements is false? In the circular flow model:
A) the funds needed to finance investment spending come from the saving of households. B) GDP can be measured either by the income received or by the expenditures made. C) factor payments are made to business firms. D) consumption expenditures are made by households.