Jim’s Limited Leather dumps its tanning chemicals into a creek that it claims to own. Jim’s only neighbor, Mr. Glover, claims he owns the creek, and the chemicals are killing his fish. Why would it be impractical to apply the Coase theorem to find a workable solution in this case?
a. There are too many transactors.
b. There is no externality.
c. Property rights are uncertain.
d. Leather is a private good.
c. Property rights are uncertain.
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In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to
rise, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply
In 2008, foreclosures reached a record high. Which of the following is NOT a possible reason for foreclosures?
A) Many mortgages were initiated without a down payment. B) Many mortgages were initiated on secondary and investment homes. C) Some mortgages were adjustable rate mortgages which might have dramatically increased monthly payments for some. D) Property values were increasing too fast.
If x causes y, then
a. x and y are inversely related b. y is a dependent variable c. other variables don't matter d. y must, in turn, cause x e. x and y are always in a direct relation to each other
The patent and copyright systems
a. reduce the cost of duplicating intellectual property b. help make the market for intellectual property more competitive c. are forms of intellectual property d. help increase the incentives to create new intellectual property e. help reduce the incentives to create new intellectual property