A large factory pours its toxic wastewater into a nearby river, and as a result, the residents of a downstream community experience high rates of illness and birth defects. The economic problem illustrated by this example is
a. marginal thinking.
b. comparative advantage.
c. repealing the laws of supply and demand.
d. externalities.
e. productivity growth.
d
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When attempting to build a shopping center the size of several city blocks a developer anticipates a holdout problem in his preferred location. Which of the following is not an option the developer has available to get around the holdout problem?
a. Substituting to another location by building the shopping center on former farmland on the urban fringe. b. Lobbying the local government to use eminent domain on potential holdouts. c. Attempting to purchase the properties through dummy corporations to hide his true intent. d. Using contracts that increase everyone's sale price by a small percentage if everyone sells.
Economists ________ that price controls are desirable
A) are reluctant to state B) never believe C) only recently agree D) are in agreement
Due to capitalization, the burden of future taxes may be borne by current owners of an inelastically-supplied, durable commodity such as land.
A. True B. False C. Uncertain
A fear in investing in China
A) is based in fears of its declining population. B) relates to the value of property rights. C) can be overcome by not have Chinese operations. D) none of these choices.