Each of the following, except one, is a condition necessary for a private market solution to an externality problem. Which is the exception?
a. Legal rights must be clearly established.
b. Legal rights must be easily transferred.
c. The number of people involved must be very small.
d. The amount of money involved must be very small.
e. Side payments must be arranged without cost.
D
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Explain what happens to the money supply, interest rates, investment spending and GDP when the Fed makes open market bond purchases
What will be an ideal response?
In economics, the word "aggregate" refers to
A) the government. B) how individual households differ from each other. C) the public sector itself. D) an economy as a whole.
The best example of monetary policy is which of the following?
A. the Fed lowering interest rates B. the federal government cutting taxes C. the government increasing purchases
Jen is offered a job answering the phone in the State U economics department during lunchtime, from noon to 1 p.m., Tuesdays and Thursdays. Her reservation wage for this job is $15 per hour. Now suppose the department chair announces that the $150 per week earnings from the job will be divided equally among Jen and 299 other students in the department. How much economic surplus will Jen enjoy each week if she accepts the job?
A. $0.50 B. -$29.00 C. -$29.50 D. -$14.00