Suppose fishermen go fishing at a fishery that has no property rights (meaning any fishermen could fish as she liked). The marginal cost of a fishing boat is constant at $100, and the price for each pound of fish sells at $1. Further, assume the relation between the number of vessels and the total catch is given by the following table: Each boat that goes out get an equal share of all the fish caught and there are 8 boats possible. 
If there were no controls over fishing, how many vessels would be sent out fishing?
A. 8
B. 6
C. 0
D. 7
Answer: A
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In the above figure, the break-even output and price is
A) $9 and 14. B) $13 and 14. C) $11 and 16. D) $10 and 17.
Define the law of demand and explain how this relates to typical human behavior.
What will be an ideal response?
If a particular bank regularly announces changes in its interest rate schedules before its competitors, which then set rates very close to those announced by that bank, this could be described as:
A. markup pricing. B. explicit price collusion. C. predatory pricing. D. price leadership.
If the tax cost of this proposed project is $300 per person, a majority vote will:
Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed.
A. defeat this project and resources will be underallocated to it.
B. pass this project and resources will be allocated efficiently.
C. pass this project and resources will be underallocated to it.
D. defeat this project and resources will be overallocated to it.