There are two divorce laws, A and B. Under A, it takes only one person to agree to a divorce and the divorce is granted. Under B, it takes two persons to agree to a divorce before it is granted. According to Coase,
A. there will be the same number of divorces under both laws if transaction costs are zero.
B. there will be more divorces under law A.
C. there will be more divorces under law B.
D. taxes should be imposed on those parties who seek divorces.
E. subsidies should be granted to those persons who unwillingly get divorces.
Answer: A
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Changes in supply and demand in the labor market will cause changes in wages
a. True b. False Indicate whether the statement is true or false
An increase in productivity in the agricultural sector in conjunction with an income inelastic demand for farm products
A) causes prices to fall. B) causes prices to rise. C) causes prices to remain constant. D) may cause prices to rise, fall, or remain the same, depending upon the relative shifts in the supply and demand curves.
According to the foreign trade effect, when the U.S. price level decreases, U.S. consumers are likely to buy
a. less of all products, both American made and foreign made b. more American-made products c. more foreign-made products d. different American-made products
Which of the following sets of terms describes the problem of scarcity in economics?
A) goods, land, and needs B) labor, needs, and opportunity costs C) choices, opportunity costs, and trade-offs D) production, consumption, and wants