Which of the following statements is false?
A. Externalities can sometimes be internalized through individual voluntary agreements.
B. It would be a relatively easy matter to establish property rights in the air.
C. Persuasion can be used in some cases to internalize externalities.
D. Taxes and subsidies are sometimes used as corrective devices for market failures.
Answer: B
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When voluntary exchange takes place, both parties gain from the exchange
Indicate whether the statement is true or false
The least liquid asset on this list is
A) money. B) bonds. C) houses. D) stocks.
Holding labor supply constant, a leftward shift in the labor demand curve results in a higher wage rate
a. True b. False Indicate whether the statement is true or false
Figure 4-21
At price P3 in Figure 4-21, what will tend to happen?
a.
There will be a shortage, and the price will fall.
b.
There will be a shortage, and the price will rise.
c.
There will be a surplus, and the price will rise.
d.
There will be a surplus, and the price will fall.
e.
Equilibrium will occur in the market.