Government intervention will not be necessary when voluntary contracting internalizes an externality. Which of the following is NOT a necessary condition for this to occur?
A) well-defined private property rights
B) low transaction costs
C) large numbers of individuals involved in the transactions
D) low contract enforcement costs
C
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Internal stress originates in:
a. The outside coming in, intruding b. One's own mind and body c. Acute stress d. On-going role playing, not being genuine
Economists believe that people who force themselves to always eat everything on their plate at a restaurant, regardless of how full they might feel, likely do so because:
A. they gain negative utility from insulting the chef. B. they overvalue the opportunity costs of their health and time involved with eating food they don't really want. C. they include the sunk cost of their meals in making their decision. D. they undervalue the true benefit of eating too much.
Two nations with differing comparative advantages will be able to consume more if they specialize and trade with each other than if they did not specialize or trade with each other.
Answer the following statement true (T) or false (F)
Which of the following is NOT a consumer protection right?
a. right to return products without restriction (right of return act) b. protection against misleading advertisements (truth in advertising laws) c. fair and clear lending practices (truth in lending act) d. purchased items will work properly (warranty protections)