When the Dallas Cowboys decided on Arlington, Texas as the home for their new stadium in 2005, the City of Arlington used eminent domain to acquire property from individuals who were either unwilling to sell or demanded what the city deemed were
unreasonable prices for their property. In this situation, eminent domain A) reduced transactions costs.
B) solved the holdout problem.
C) accelerated the process of getting the stadium built.
D) all of the above
D
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A typical behavior that violates the assumption of rational behavior is:
A. saying you want to lose weight, but ordering dessert. B. being willing to pay more for something if you use a credit card than if you use cash. C. stubbornly watching to the end of a movie you've decided you're not enjoying at all. D. All of these demonstrate irrational behavior.
Suppose only 7 percent of Turkey's products go to the United States. Hence, an increase in U.S. imports from Turkey:
a. would have no significant effect on Turkey's domestic income. b. would significantly increase Turkey's domestic income. c. would significantly decrease Turkey's domestic income. d. would significantly increase U.S. domestic income. e. would significantly decrease U.S. domestic income.
In the simple circular flow diagram, the flow of money from the firms to the markets for factors of production is called
a. spending. b. revenue. c. income. d. wages, rent, and profit.
A market
A. is any arrangement that brings buyers and sellers together to exchange goods or services. B. is characterized by rigid prices C. is an institution used rarely by capitalist nations. D. raises the transaction costs of doing business.