Natural resources:
A. are production inputs that come from the earth.
B. are natural talents people are born with that make them productive.
C. are physical structures that sit on the earth, improving it and making it more productive.
D. None of these is true.
A. are production inputs that come from the earth.
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Wait unemployment and search unemployment are both types of
A. structural unemployment. B. cyclical unemployment. C. frictional unemployment. D. hidden unemployment.
The measure for the actual rate of inflation used in the Taylor rule is the:
A. producer price index. B. consumer price index. C. GDP deflator. D. personal consumption expenditure index.
Aluminum Aces dumps wastewater into a creek they have owned for decades. The new neighbor, Ms. Franklin, has tried to grow bamboo along the creek where it enters her property, but the wastewater kills about $1,000 worth of her bamboo each year. She offers Aluminum Aces $600 per year to add a new filter, which costs $400, to their system so wastewater will no longer kill her bamboo. What is one way this case exemplifies the Coase theorem?
a. One party gains at the other’s expense. b. Property rights are questionable. c. A negative externality is internalized. d. Transaction costs are high.
As the chapter points out, there have been many cases where derivatives have led to a lot of abuse. If this is the case, why do derivatives exist?
What will be an ideal response?