(Consider This) Darcy and Rachel live down the hall from each other in the same dorm. Darcy likes to play her music loudly down the hall, and Rachel finds the music annoying. A Coase theorem solution for this problem would be for:
A. Darcy and Rachel to negotiate a mutually agreeable level of volume and/or selection of
music.
B. the director of housing to impose a fine on Darcy whenever she plays her music too loud.
C. the dorm government to set a payment schedule by which Rachel would compensate
Darcy for making her play her music at a lower volume.
D. the college to ban the playing of music in dorms.
Answer: A
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A. she thinks the coin will come up heads on the next flip because it came up heads on the previous flip. B. she thinks the coin will come up tails on the next flip because it came up heads on the previous flip. C. she thinks the coin is less likely to come up heads because it came up heads on the previous flip. D. she thinks the coin is equally likely to come up heads or tails on the next flip.
In the long run, if the output of a firm is zero then its total cost will be equal to its total fixed cost
a. True b. False Indicate whether the statement is true or false
The basic idea behind the multiplier is that an increase in
a. GDP brings about an additional, larger increase in GDP. b. consumer spending causes a larger increase in investment spending. c. government spending causes a larger increase in tax revenues. d. spending will cause an even larger increase in equilibrium GDP.
Money as a medium of exchange I. Facilitates the exchange of goods II. Reduces the incentive to barter
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