One economically efficient way to eliminate the Tragedy of the Commons is to
a. tax the owners of the resource.
b. prevent anyone from using the resource.
c. reduce the marginal social benefit of the resource.
d. establish private ownership of the resource.
d
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Labor market regulations in European Union countries
a. do not contain limitations on plant closing but do have provisions for mandatory severance pay that may discourage firms from expanding employment. b. include limitations on plant closing but have no provisions for mandatory severance pay that may discourage firms from expanding employment. c. neither entail limitations on plant closing nor provisions for mandatory severance pay that may discourage firms from expanding employment. d. include limitations on plant closing and provisions for mandatory severance pay that may discourage firms from expanding employment.
During the financial crisis of 2007-2008, the U.S. central bank lowered its policy rate from 5.25% to 0%. What was the effect on market rates of interest?
a. Market rates increased by 5%. b. Market rates fell by 5%. c. Market rates fell below zero. d. Market rates barely moved at all.
An increase in aggregate demand is most likely to result in
A. inflation. B. recession. C. economic stagnation. D. a decrease in real GDP.
Commercially-run forestry companies have the most profit incentive to harvest trees from a forest:
A. Early in the forest growth cycle B. In the middle of the forest growth cycle C. Before the trees are fully mature D. After the trees can no longer grow