Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog is worth $700 to Nick, and that Jane bears a cost of $500 from the barking. Assume that the city has no ordinance against barking dogs. A possible private solution that would benefit both parties is for:
a. There is no private solution that would improve this situation for both parties.
b. Jane to
pay Nick $650 to get rid of the dog.
c. Jane to pay Nick $800 to get rid of the dog.
d. Nick to pay Jane $600 for her inconvenience.
a
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Which of the following statements is (are) correct? Under a floating exchange rate system
a. dramatic swings in the dollar have become less common the last 20 years. b. the dollar has exhibited considerable volatility, particularly over the last 20 years. c. the value of the dollar has been targeted within a specific range. d. a gradual increase in the value of the dollar has taken place.
Which of the following bonds has the highest interest rate?
a. a high credit risk and a short term. b. a low credit risk and a short term. c. a long term and a high credit risk. d. a long term and a low credit risk.
According to the accompanying table, Martha has the absolute advantage in making: Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes. B. neither pies nor cakes. C. both pies and cakes. D. pies.
If the imposition of a tariff on a commodity alters the relative international prices of the imposing country's exports to its imports, it is referred to as the
A. production effect of the tariff. B. terms-of-trade effect of the tariff. C. total price effect of the tariff. D. consumption effect of the tariff.