Sailboats and motorboats share Emerson Lake, which nobody owns. The sailors say the motorboats are a hazard; the motorboaters say it is the other way around. Frequent collisions occur, with many injuries and some deaths every year. If the City of Emerson were to buy the lake itself,
a. the problem would be solved, because the lake would have an owner
b. the problem would be solved, because no one could use the lake
c. the city would still have to assign property rights so that use of the lake would be efficient
d. the city would give the right to use the lake to the larger group
e. the city would give the right to use the lake to the richer group
C
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A price setter is a firm that:
A. has some degree of control over its price. B. has the ability to set price at any level it wishes. C. attempts but fails to be perfectly competitive. D. faces perfectly inelastic demand.
The functions of money are to serve as a
A. resource allocator, a method for accounting, and a means of income distribution. B. determinant of consumption, investment, and government spending. C. unit of account, a store of value, and a medium of exchange. D. factor of production, exchange, and aggregate supply.
The key difference between classical and Keynesian macroeconomists is their differing beliefs about
A) the slope of the aggregate demand curve. B) the speed at which prices adjust. C) the natural rate of unemployment. D) the full-employment level of output.
Across the United States, fire departments are fighting with private companies over the right to respond to medical emergencies. Each side will fight harder the:
A. more inelastic the demand. B. less inelastic the demand. C. more elastic the supply. D. more elastic the demand.