Alex and Ben are both loggers wanting to harvest timber from the same forest. Alex prefers to harvest and replant at a sustainable rate; Ben wants to harvest as many trees as possible to maximize short-run profit, and then move on. They face the same
production costs. Refer to the information given. If property rights are poorly enforced or nonexistent:
A. Ben will choose to harvest as quickly as possible, but Alex will choose to harvest more
slowly and replant.
B. both will harvest trees as quickly as possible, before the other one does.
C. both now have an incentive to harvest and replant in a sustainable manner.
D. we would expect them to form an agreement on harvesting and replanting.
Answer: B
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The table gives the demand and supply schedules for cookies. The government now levies a $0.30 tax on cookies. As a result, the price of a packet of cookies increases by ________ and the tax revenue collected is ________ a week
A) $0.20; $24 B) $0.10; $9 C) $0.20; $20 D) $0.30; $30
Holding other factors constant, building an on-line job database to help workers find jobs would likely
A) reduce cyclical unemployment and the natural rate of unemployment. B) reduce structural unemployment and the natural rate of unemployment. C) reduce frictional unemployment and the natural rate of unemployment. D) increase the natural rate of unemployment.
Increases in the duration of unemployment may
A) reflect a general downturn in economic activity that depresses job openings. B) increase the number of discouraged workers. C) increase the unemployment rate. D) all of the above.
If there is a center country to which other nations peg under a noncooperative arrangement, which nation(s) have monetary policy authority?
A) none B) all C) industrialized nations only D) the center nation only