Using tradable allowances instead of quotas may be a better solution to the provision of common resources because they:
A. allocate the good in a less efficient way, and quotas do not.
B. ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not.
C. assign private property rights-and an incentive, as owners, which means common resource now get overused, and quotas do not.
D. allow the government to set a specific amount of the good to be consumed, while quotas do not.
B. ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not.
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Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of
A. $20,000. B. $40,000. C. $0. D. $100,000.
Labor (# of employees)Total Output0011025031104160520062307255827592901030011305Assume the table shown is for a hat factory, and shows the total production of hats given various numbers of employees. Adding a seventh employee adds:
A. 275 hats to total production. B. 20 hats to total production. C. 255 hats to total production. D. 25 hats to total production.
If firms are price takers this implies that
A. the marginal revenue curve is upward sloping. B. the demand curve facing the firm is perfectly elastic. C. in the short-run economic profits will be zero. D. the total revenue curve is horizontal.
Real per capital GDP in the United States is:
A. over 30 times what it was a century ago. B. about the same as it was a century ago. C. over three times what it was a century ago. D. over seven times what it was a century ago.