If ________ bargaining to resolve an externality is to result in an efficient outcome, the initial assignment of rights must be clear to ________ parties.
A. public; at least one
B. public; only government-sponsored
C. private; both
D. private; at least one
Answer: C
You might also like to view...
If the demand for tennis shoes increases and a firm's supply curve is upward sloping, then:
A. producer surplus decreases. B. producer surplus does not change. C. producer surplus increases. D. producer surplus may either increase or decrease.
If the price elasticity of demand is zero for all prices, the demand curve is
A. horizontal. B. vertical. C. neither horizontal nor vertical.
If the price of medical services goes up 10% and quantity demanded falls by 3%, demand is ________.
Fill in the blank(s) with the appropriate word(s).
The Environment Ministry in Japan proposed a new carbon tax to meet Japan's obligations to reduce carbon dioxide emissions under the Kyoto Treaty. The tax would be levied on producers and importers of fossil fuels and raise the cost of using fossil fuels. How do most economists view a tax such as this?
A. They do not believe any government intervention is necessary because the invisible hand of the market will correct the problem. B. They prefer voluntary programs to taxes because they reduce the role of compulsion. C. They prefer direct regulation to taxes because taxes create deadweight loss. D. They support taxes on pollution as a way of prompting decision makers to consider all costs.