A metal-stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to nap. It would cost the factory $5 million to move; it would cost $1 million for the day care center to move. Sound insulation for the factory costs $1 million; insulation for the day care center costs $200,000 . The court determines that the day care center has the property right
What would be the optimal solution to this problem?
a. The factory should install sound insulation because that is cheaper than moving.
b. The factory should pay the day care center to move.
c. The factory should buy insulation for the day care center.
d. The day care center should buy its own insulation.
e. The day care center should move.
C
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Which of the following causes a leftward shift in the short-run aggregate supply curve? a. An increase of goods prices while nominal incomes are unchanged
b. An increase in nominal incomes. c. An increase of full-employment real GDP. d. An increase of personal consumption expenditures while the price level is unchanged. e. An increase of personal consumption expenditures while full-employment real GDP is unchanged.
How does an increase in the price level affect the position of the C + I + G + X curve and in turn the equilibrium level of real GDP?
A. The C + I + G + X curve shifts up, thereby increasing the equilibrium level of real GDP. B. The C + I + G + X curve shifts down, thereby reducing the equilibrium level of real GDP. C. The C + I + G + X curve shifts up, thereby reducing the equilibrium level of real GDP. D. The C + I + G + X curve shifts down, thereby increasing the equilibrium level of real GDP.
In a map showing three indifference curves a consumer is most well off on
A) the curve which is closest to the origin of the coordinate axes. B) the curve which is most farther away from the coordinate axes. C) the curve that is in the middle. D) none of the above.
Many forms of seafood (lobster, crab legs, etc.) are consumed by dipping the meat in melted garlic butter. If someone suggested that it would therefore be equally appealing to drink melted butter after having eaten garlic and unseasoned seafood, you would know they had fallen victim to which of the following?
A. the fallacy that correlation is the same as causation B. a logical tautology C. the fallacy of composition D. none of the options are correct