In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?
A) littering on highways
B) overharvesting of alligators in Louisiana
C) poaching of elephants in Africa
D) trees of one neighbor blocking a view of another
Answer: D
You might also like to view...
The two most important developments in global capital markets over the last few decades are
A) the growth in FDI within developed countries and private capital flows to emerging economies. B) the growth in FDI to emerging economies and private capital flows within developed countries. C) the growth of cross-border mergers and acquisitions and the stabilization of exchange rate regimes. D) the growth of cross-border mergers and acquisitions and private capital flows within developed countries.
Countries with floating exchange rates have certain characteristics. Indicate the one that does not apply to those countries
A) closed economy B) small economy C) diversified trade D) divergent inflation rates
Within the aggregate demand/aggregate supply framework, the quantity produced and purchased in the goods and services market represents
a. nominal output or nominal GDP. b. the interest rate. c. real output or real GDP. d. the consumer price index.
A manager is attempting to assess the probability of a recession ending in the next six months and its impact on expected profitability. The manager believes there is a 75 percent chance the recession will end in six months and profits will return to $400 million. However, there is a 25 percent chance the recession will not end in six months, resulting in a $5 million loss. The expected profits over the next six months are:
A. $301.25 million. B. $395 million. C. $405 million. D. $298.75 million.