You accidentally run into your next door neighbor's fence and destroy it. Your neighbor sues you and you are required to pay $1,000 to repair the fence. This is an example of
A. the free-rider problem.
B. a liability rule.
C. the Coase theorem.
D. an injunction.
Answer: B
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State and briefly explain whether or not the empirical evidence generally supports the belief that there is a fixed trade-off between unemployment and inflation, such that monetary policymakers can achieve the combination they prefer
What will be an ideal response?
The U.S. merchandise trade balance has been in surplus over the last 20 years
Indicate whether the statement is true or false
Which of the following is correct?
a. No forms of capital income are taxed twice. b. The tax code cannot be rewritten to provide greater incentive to save. c. Means-tested benefits increase the incentive to save. d. There is a correlation between national savings rates and measures of economic well-being.
Refer to the data provided in Table 16.3 below to answer the following question(s).Table 16.3 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.3Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$8 $81$16$16212202 24 40318383 32 72426644 401125361005 48160Refer to Table 16.3. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade
permits, how many permits will be traded between the two firms? A. B will buy one permit from A. B. A will buy two permits from B. C. B will buy two permits from A. D. A will buy one permit from B.