A system of laws and courts generates positive externalities because
A) only governments are capable of creating such systems.
B) people cannot choose whether or not to obey the law.
C) people who disobey the law benefit from the existence and enforcement of rules applicable to all.
D) such a system could not exist without the approval of a majority.
C
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With rent controls set below the equilibrium rent, what mechanism might arise that moves the market closer to the efficient equilibrium?
A) decreased search costs B) black market activity C) increased advertising by landlords D) more favorable leases offered to tenants
The production function for hamburgers can be written as q = 0.1X + 0.1Y, where X is Canadian ground beef and Y is U.S. beef, both measured in pounds. Which graph in the figure best represents the isoquants for the hamburger production when U.S
ground beef is on the vertical axis and Canadian ground beef is on the horizontal axis? A) Graph A B) Graph B C) Graph C D) Graph D
Compared with a partnership, a corporation can raise money more easily because owners of a corporation have less liability for the corporation's actions than owners of a partnership have for the partnership's actions
Indicate whether the statement is true or false
Property taxes are the product of the tax rate (T) and the assessed value (V). The total property tax collected in your city (P) is: P = T•V. If the value of properties rise 4% and if Mayor and City Council reduces the property the tax rate by 2%, what happens to the total amount of property tax collected? [HINT: the percentage rate of change of a product is approximately the sum of the
percentage rates of change.} a. It rises 6 %. b. It rises 4 %. c. It rises 3 %. d. It rises 2 % e. If falls 2%.