Keeping in mind the Coase theorem, in the figure above, if the pesticide factories own the lake, the market does what?
A) overproduces 120 tons of pesticide
B) underproduces 120 tons of pesticide
C) overproduces 60 tons of pesticide
D) produces the efficient quantity of pesticide
D
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Mac can bake more cookies than Monica per hour. It must be true that
A) Monica has an absolute advantage in cookie baking. B) Mac has an absolute advantage in baking cookies. C) Mac has a comparative advantage in baking cookies. D) Monica has a comparative advantage in baking cookies. E) Mac cannot benefit by trade between the two of them.
If a small percentage increase in the price of a good results in a rather large percentage increase in the quantity supplied of the good, supply is said to be
a. vertical. b. relatively inelastic. c. relatively elastic. d. robust.
Sweden and Norway are usually described as ________________ economies.
Fill in the blank(s) with the appropriate word(s).
Which one of the following would best describe a mutual fund?
A. An investment that is available at many banks and is FDIC insured B. A company that manages a portfolio that is purchased by pooling the money of its investors C. A debt contract that is issued by a company and offers interest payment on the loan D. Ownership of shares in a corporation with no guarantee the company will be profitable