Which of the following are assumptions behind the Coase theorem?
A) low transactions costs
B) low levels of pollution
C) high levels of pollution
D) the necessity of government intervention
A
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517John's benefit from his first hour cleaning windows is:
A. $7 B. $14 C. $18 D. $2.
Which question is an illustration of a microeconomic question?
A. Is the purchasing power of the dollar higher or lower today than it was in 2008? B. Does government spending influence interest rates in the economy? C. Is the volume of wine produced in 1 year dependent on the price of wine? D. Does a government deficit reduce national economic growth?
The demand curve for foreign exchange
a. slopes downward b. slopes upward c. is horizontal, because no individual country can influence the price of foreign exchange d. is vertical, because no individual country can influence the price of foreign exchange e. may slope downward or upward
"Trade is generally harmful if there are large disparities between countries in wages."
A) This is generally true. B) This is generally false. C) Trade theory has nothing to say about this issue. D) This is true if the trade partner ignores child labor laws. E) This is true if the trade partner uses prison labor.