If the property rights for forests are clear and enforced, then:
A. They will become common property
B. Governments will not be able to overtax them
C. Owners have profit incentives to harvest slowly over time
D. The logging of the forest will increase at an unsustainable rate
C. Owners have profit incentives to harvest slowly over time
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The equilibrium price under an import quota is below the price that occurs with free trade
Indicate whether the statement is true or false
In perfect competition, the market demand for the good ________ perfectly elastic and the demand for the output of one firm ________ perfectly elastic
A) is; is B) is; is not C) is not; is D) is not; is not
The income that measures a household's earnings in the absence of government redistribution is called
A) market income. B) real income. C) money income. D) cash income.
The following is a Cobb-Douglas production function: Q = 1.75K0.5•L0.5 . What is correct here?
a. A one-percent change in L will cause Q to change by one percent b. A one-percent change in K will cause Q to change by two percent c. This production function displays increasing returns to scale d. This production function displays constant returns to scale e. This production function displays decreasing returns to scale