Fishing, the lumber industry, tourism, and even city buildings in Canada are harmed by acid rain, most of which comes from the United States. According to the Coase theorem, the problem is
a. easy to solve because the United States and Canada are geographically close
b. easy to solve because the United States and Canada are allies
c. easy to solve because international property rights are recognized among capitalist countries
d. hard to solve because international negotiations are more costly than domestic ones
e. hard to solve because Canadians have property rights to clean, nonacidic rain
D
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Macroeconomics helps explain economic fluctuations, why the economy shrinks and expands and why some of the economy's resources are idle
Indicate whether the statement is true or false
Is equilibrium always at an optimal level of output? Explain your answer.
What will be an ideal response?
Jose and Maria work at a restaurant. Jose can make either 10 pancakes or 4 waffles; Maria can make either 8 pancakes or 2 waffles. According to this scenario
A) Maria has the absolute advantage in making waffles B) Maria has the absolute advantage in making pancakes. C) Maria has the comparative advantage in making pancakes. D) Jose has the comparative advantage in making pancakes.
Under the Bretton Woods system, countries experiencing large and persistent current account deficits were obliged to devalue their currencies and/or take measures to cut their deficits by contracting their economies.
Answer the following statement true (T) or false (F)