Suppose a steel mill pollutes the lake and harms a fishing firm. Under a Coase bargaining solution, an efficient solution exists between the two entities if:
A. the property rights to the lake is assigned to the fishing firm.
B. the property rights to the lake is assigned to the steel firm.
C. the property rights to the lake is assigned to the government.
D. the property rights to the lake is assigned, regardless to whom it is assigned, the steel mill or the fishing firm.
Answer: D
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Refer to Table 11-1. What is the average product of labor when the farm hires 5 workers?
A) 4 pounds B) 10.8 bushels C) 38.2 pounds D) 54 pounds
A monopolist faces a
a. horizontal demand curve. b. vertical demand curve. c. downward-sloping demand curve. d. U-shaped demand curve.
Suppose there are two types of jobs-safe and risky. Safe jobs currently pay $10 per hour. Risky jobs currently pay $20 per hour. The government intervenes in the market, mandating that all firms offer safe jobs and pay a wage of $10 per hour. Which of the following is true?
A. Workers who originally worked risky jobs are helped by the policy. B. Workers who originally worked safe jobs are helped by the policy. C. Firms that originally offered risky jobs are hurt by the policy. D. Firms that originally offered safe jobs are hurt by the policy. E. No one is hurt by the new policy.
A point outside the production possibilities curve represents a combination of goods that is:
A. inefficient. B. efficient. C. unattainable. D. attainable.