A copper ore refiner pollutes the water upstream from a brewery. These are the only two parties involved. The transactions costs of reaching an agreement between the refinery and the brewery are low
The amount of water pollution will be at the efficient level A) only when the property right to the stream is assigned to the ore refinery.
B) only when the property right to the stream is assigned to the brewery.
C) when the property right to the stream is assigned to either the refinery or to the brewery.
D) when no one has clear property rights.
C
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For a monopolist, marginal revenue is
a. equal to price b. greater than price c. less than price d. represented by a horizontal curve e. equal to average revenue
A monopsonist is
A) a single buyer. B) a single seller. C) a unionized labor market. D) a non-profit-maximizing firm.
The possibility for recipients of funds in foreign countries to engage in riskier behavior after receiving financing is called
A. adverse selection. B. inequitable financing. C. moral hazard. D. asymmetric information.
There is a(n) ________ relationship between a nation's rate of growth in real GDP per capita and bureaucratic inefficiency.
A. direct B. undefined C. inverse D. proportional