Offering to pay the passenger in front of you to keep her from reclining her airplane seat is an example of
A) a tradable exchange contract. B) a Pigovian solution to an externality situation.
C) a Coasian solution to an externality situation. D) command-and-control policy.
C
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In the United States, who determines the combination of bond and money creation that finances the federal budget deficit?
A) the federal government itself B) the Federal Reserve C) the private banking system D) private bond- and money-holders
Which of the following statements about the "separate but equal" provision of Plessy v. Ferguson is MOST accurate?
a. resulted in African-American schools that were comparable to white schools. b. resulted in African-American schools that were preferable to white schools in the South. c. did not seriously hamper the labor market experience of African-Americans. d. led to the creation of African-American schools that were systematically under funded.
The difference between Gross National Product and Net National Product is the
a. rate of inflation. b. statistical discrepancy encountered in calculating GDP. c. difference between real versus nominal GDP. d. depreciation of the economy's capital stock.
Tight monetary policy ________ interest rates which ________ the demand for a currency and ________ the fundamental value of the exchange rate.
A. increases; increases; decreases B. increases; decreases; increases C. decreases; decreases; decreases D. increases; increases; increases