Juan purchased a parking pass to a specific lot from the university for $600. Another student, Cara, wants to park there because it's close to her dorm, but cannot because it is full. The Coase Theorem suggests that which of the following negotiations would lead to an optimal outcome?
A. Cara pays Juan $500 for his parking pass
B. Cara pays Juan $400 to buy another parking pass
C. Cara pays Juan $650 for his parking pass
D. Cara buys a pass to another lot for $400 and trades that with Juan
Answer: C
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The narrowly-defined money supply in the U.S., called M1, does not include which of the following?
A) Coins in circulation B) Currency in circulation C) Currency in the vaults of commercial banks D) Demand deposit liabilities of commercial banks
Before 1863
A) federally-chartered banks had regulatory advantages not granted to state-chartered banks. B) the number of federally-chartered banks grew at a much faster rate than at any other time since the end of the Civil War. C) banks acquired funds by issuing banknotes. D) banks were required to maintain 100% of their deposits as reserves.
Which one of the following describes the current state of economic development in the United States?
A. Employment is declining in the manufacturing sector and growing in the service sector. B. Employment is declining in the manufacturing sector and growing in the agricultural sector. C. The lack of well-defined property rights in the United States means that entrepreneurs do not expect to capture the benefits of innovations they bring to the marketplace. D. The United States is running out of natural resources, and therefore it will soon experience a drop in the rate of economic growth.
Refer to the information provided in Table 22.5 below to answer the question(s) that follow.
Table 22.5
Refer to Table 22.5. Suppose 2014 is the base year. The price index in 2014 is
A. 1,000. B. 100. C. 10. D. 1.