Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog is worth $500 to Nick, and that Jane bears a cost of $700 from the barking. Assume that the city has no ordinance against barking dogs. A possible private solution that would benefit both parties is for:
a. Jane to pay Nick $450 to get rid of the dog
b. Nick to pay Jane $650 for her inconvenience.
c. Jane to pay Nick $650 to get rid of the dog.
d. There is no private solution that would improve this situation for both parties.
c
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Refer to the scenario above. Which of the following statements will be true in steady state?
A) Economy A will have a lower capital stock and a greater GDP than economy B. B) Economy A will have a greater capital stock and a lower GDP than economy B. C) Economy A will have a greater capital stock and GDP than economy B. D) Economy A will have a lower capital stock and GDP than economy B.
Refer to the figure above. What is the equilibrium employment when the labor demand curve is LD2 and the labor supply curve is LS2?
A) 10 units B) 20 units C) 5 units D) 15 units
When firms incur unplanned inventories, they typically
a. build new plants. b. call for more government spending. c. hire more workers and increase production. d. lay off workers and reduce production.
The field of macroeconomics studies ________ and microeconomics studies ________.
A. variables within a single economy; international variables B. economic aggregates; individual markets C. individual markets; economic aggregates D. international variables; variables within a single economy