Which of the following is the best example of how the question of "what goods and services to produce?" is answered by the command process?
A) government subsidies for windmill energy production
B) laws regarding equal opportunity in employment
C) government allowance for the deduction of interest payments on private mortgages
D) government regulations concerning the dumping of hazardous waste
A
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Consider a game where individuals are asked to contribute to a public good. Then consider the best response function for individual i, with individual i's contribution measured on the vertical axis and "the average contribution by everyone else" on the horizontal. Then as the number of individuals increases, i's best response function shifts in.
Answer the following statement true (T) or false (F)
Is "utility" another word for the cost we give up when we consume a good?
What will be an ideal response?
The unemployment rate is defined as the number of
a. unemployed individuals divided by the number of employed individuals. b. employed individuals divided by the number of individuals in the working-age population. c. unemployed individuals divided by the number of individuals in the working-age population. d. unemployed individuals divided by the number of individuals employed plus the number of unemployed.
According to the Coase theorem, efficient solution of an externality problem:
a. can be achieved when any one of the parties to a transaction is assigned a property right. b. can be achieved when transaction costs borne by parties to a transaction are high. c. can be achieved only if one particular party is assigned the property right. d. can be achieved only if both the parties to a transaction are assigned the property rights.