Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1000 ITQ and the current market price is $10 per ton. If Joe sold his ITQ to Ronny for $7000, he and Ronny would:
A. Make the sale because they're both better off
B. Not make the sale because Joe is better off and Ronny is not
C. Not make the sale because Ronny is better of and Joe is not
D. Not make the sale because neither is better off
B. Not make the sale because Joe is better off and Ronny is not
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Each of the following increases average labor productivity except:
A. more natural resources. B. more physical capital. C. more human capital. D. more central planning.
Assuming no change in the effective tax rate on capital, a decrease in the government budget deficit will reduce the current account deficit if and only if the decrease in the budget deficit
A) reduces desired national saving. B) increases desired national saving. C) reduces desired national investment. D) increases desired national investment.
Because incentive contracts result in more risk placed on the part of agents
a. the average level of compensation typically falls b. the average level of compensation typically rises c. compensation is unaffected d. employers want employees to insure against wild compensation swings
A progressive tax:
A. takes the same percentage of taxes from income from all taxpayers. B. requires those with low incomes to pay a smaller percentage of their income than high-income people. C. is levied so that low-income taxpayers pay a greater proportion of their income toward taxes than high-income taxpayers. D. taxes everyone the same amount, regardless of their income.