Your roommate has the right to play her harmonica during the day. But you find the best time to study is during the day, and the harmonica playing makes it hard for you to concentrate. You tell your roommate that you will do her laundry every week if she does not play the harmonica during the day and she agrees to this. This is an example of
A. the Coase theorem.
B. liability rules.
C. the drop-in-the-bucket problem.
D. an injunction.
Answer: A
You might also like to view...
The production possibilities curve in Figure 2.1 illustrates the notion of
A) opportunity cost. B) increased factory goods production. C) diminishing resources. D) increased farm produce production.
What does the income elasticity of demand measure? How is it calculated?
What will be an ideal response?
If the equilibrium price for some product is $1000, a price ceiling of $1200 will result in
A) massive surpluses of the good. B) the same general effects as a price floor of $1200. C) the same general effects as an administered price of $1200. D) the same general effects as a price ceiling of $600. E) no effects because the price ceiling is not binding at that price.
Economists:
A. always put the independent variable on the horizontal axis and the dependent variable on the vertical axis. B. always put the dependent variable on the horizontal axis and the independent variable on the vertical axis. C. are somewhat arbitrary in assigning independent and dependent variables to the horizontal and vertical axes. D. measure the slope of a line differently than do mathematicians.