Congressional representatives have called for extensive ergonomics regulations to reduce strains and injuries from repetitive activities by workers. Such regulation, if passed, would be a good example of:
A. industrial regulation.
B. the principal-agent problem.
C. the free-rider problem.
D. social regulation.
Answer: D
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Why is the MC curve of cleaning pollution upward sloping?
A. Increasing opportunity costs of cleaning pollution. B. There are less and less benefits to outweigh the costs. C. There are increased incentives for cleaning pollution. D. Citizens must pay more of their taxes to clean the pollution.
A village has five residents, each of whom has an accumulated savings of $50. Each villager can use the money to buy a government bond that pays 10 percent interest per year or to buy a year-old goat, send it onto the commons to graze, and sell it after one year. The price of the goat that the villager will get at the end of the year depends on the amount of weight it gains while grazing on the commons, which in turn depends on the number of goats sent onto the commons, as shown in the table below. Assume that if a villager is indifferent between buying a bond and buying a goat, the villager will buy a goat.Number of goatson the commonsPrice per 2-yearold goat ($)Income pergoat ($/year)180302752537020465155555 What will be the total village income if each villager decides how to invest
based on his or her individual self-interest? A. $5 B. $125 C. $25 D. $75
Refer to Figure 5-16. What is the optimal quantity of street lights to install?
A) 3
B) 4
C) 6
D) 9
Refer to the above figure. If flow (8) is revenues and flow (4) is economic resources (land, labor, capital, and entrepreneurial ability), then box:
A. A is the resource market and box B is the product market. B. C is the product market and box B is the resource market. C. B is the resource market and box A is the product market. D. D is the product market and box B is the resource market.