Bargaining costs are generally high in cases involving environmental externalities because
a. there are strong incentives to be a free rider.
b. many individuals may be affected by the externalities.
c. it is difficult to measure the costs of the externalities.
d. all of the above.
d
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Opportunity cost is illustrated on the production possibilities curve by a
A) bowed-out shape of the curve. B) shift to the right of the curve. C) shift to the left of the curve. D) movement along the curve.
If two investments are perfectly positively correlated:
A. there is no benefit from diversification. B. bets are perfectly hedged and risks are canceled out. C. diversification reduces risk without changing the expected payoff. D. diversification reduces both risk and the expected payoff.
You observe that the demand for pomelo is given byQd = 5,000-10Pand the supply of pomelo is given byQs = 1,000 + 30P. What is the market equilibrium for pomelo?
A. P = 500, Q = 16,000 B. P = 200, Q = 3,000 C. P = 100, Q = 4,000 D. P = 50, Q = 2,500
Land, or natural resources, include(s) the fertility of the land, minerals below it, and________?
A, wind and sun B. human resources C. human capital resources