You love Christmas and elaborately decorate your home and yard. It is such a spectacle that hundreds of people drive by your house each day to enjoy the display. The noise and traffic disturb your neighbors who sue you, and you are required to take down your display permanently. This is an example of
A. the Coase theorem.
B. the free-rider problem.
C. a liability rule.
D. an injunction.
Answer: D
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If this year's price level exceeds last year's
A) the inflation rate between these years has been positive. B) the inflation rate is accelerating. C) deflation is occurring. D) no relative price changes are occurring.
The main point of the Consider This box on clipping coins is that:
A. decreases in the money supply cause deflation. B. decreases in tax rates often increase tax revenues. C. inflation imposes a "hidden tax" on those who hold money. D. demand creates its own supply.
Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is
A. $50. B. $60. C. $110. D. indeterminate from this information.
A public good:
A. can never be provided by a nongovernmental organization. B. cannot be provided to one person without making it available to others too. C. generally results in substantial spillover costs. D. costs essentially nothing to produce and thus is provided by the government at zero price.