Rainbow trout has the shortest fishing season, which causes a rapid decrease in its population. To prevent the extinction of the trout, the government initially imposed a quota on the total amount of fish caught. The quota was imposed on the fishing of rainbow trout to prevent _____
a. the free rider problem
b. the tragedy of the commons
c. asymmetric information
d. deadweight loss
b
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Refer to the scenario above. What is the sum of the payoffs to the firms if both the firms choose Strategy X?
A) 6 B) 0 C) 1 D) -1
You are the manager of a restaurant you believe one of your suppliers is engaged in cartel activity. As the manager, you ________ an incentive to report the behavior because your restaurant can ________.
A) do not have; have to pay whistle-blower fees B) do not have; receive treble damages C) have; have to pay whistle -blower fees D) have; receive treble damages
One timing problem with fiscal policy to counter a recession is an "administrative lag" that occurs between the:
A. start of the recession and the time it takes to recognize that the recession has started. B. time the need for the fiscal action is recognized and the time that the action is taken. C. end of the recession and the time it takes to recognize that the recession has ended. D. time fiscal action is taken and the time that the action has its effect on the economy.
Related to the Economics in Practice on p. 647: Surveys by the bank of England suggest that consumers are
A. more influenced by their own experiences than by actual government numbers. B. equally influenced by actual government numbers and their own experiences. C. rarely influenced by either actual government numbers or by their own experiences. D. more influenced by actual government numbers than by their own experiences.