If a company dumps pollution in the water and fishermen are hurt and if transactions costs are prohibitively high and efficiency is the most important criteria,
A. the company should be made liable for the damage.
B. the company should be taxed enough so the government can keep the river clean.
C. liability should be placed on the group that has the least cost of solving the problem.
D. the company should be allowed to pollute because a river is not private property.
Answer: C
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A firm in perfect competition is a price taker because
A) there are no good substitutes for its good. B) many other firms produce identical products. C) it is very large. D) its demand curves are downward sloping. E) its demand curve is vertical at the profit-maximizing quantity.
The declining trend in the currency-deposit ratio during 2007-2014 can be explained by
A) the increased holdings of U.S. currency by foreigners. B) bank panics. C) a drop in the rate of interest paid on checking deposits. D) the increasing use of debit cards.
Data suggests that the tax cuts of the 1980s significantly decreased the supply of labor in the United States.
Answer the following statement true (T) or false (F)
If your tuition is $5,000 this semester, your books cost $600, you can only work 20 rather than 40 hours per week during the 15 weeks you are taking classes and you make $15 per hour, and your room and board is $3,000 this semester (same as if not attending college), then your opportunity cost of attending college this semester is
A. $5,600. B. $5,900. C. $10,100. D. $11,600.