Assume that your roommate is very messy. According to campus policy, you have a right to live in an uncluttered apartment. Suppose she gets an $80 benefit from being messy but imposes a $60 cost on you. The Coase theorem would suggest that an efficient solution would be for your roommate to
a. stop her messy habits or else move out.
b. pay you at least $60 but less than $80 to live with the clutter.
c. continue to be messy and force you to move out.
d. demand payment of at least $60 but no more than $80 to clean up after herself.
b
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The more bowed out the Lorenz curve, the
A) less equal the income distribution. B) more equal the income distribution. C) greater the overall wealth in the economy. D) less the overall wealth in the economy.
How many units should Harvey's Housewares produce?
a. 1 unit b. 2 units c. 3 units d. Zero units, at these prices, the production should not start
A focus of antitrust activities is
A) entry blocking. B) price fixing. C) the buying of patents. D) rent-seeking by lobbyists.
Rising prices for a natural resource stimulate
a. the development of complements for the resource. b. the development of substitutes for the resource. c. the development of externalities from the resource. d. All of the above are correct.