A large farming operation which uses a potent fertilizer is located up river from a trout farmer. If property rights of the river exist and transactions costs are low, the amount of pollution will be ________
A) efficient only if the trout farmer owns the river
B) inefficient if the farming operation owns the river
C) efficient if either the farming operation or the trout farmer own the river
D) always inefficient
C
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Which of the following is a factor determining the natural rate of unemployment?
A. real GDP B. the business cycle C. demographics D. the labor force participation rate
According to the text, which of the following is a macroeconomic outcome?
A. Internal market forces B. Policy levers C. International balance D. Population growth
Given the production function Q = min{4K, 3L}, what is the average product of capital when 8 units of capital and 16 units of labor are used?
A. 32 B. 2 C. 4 D. 16
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.