When two people trade their initial endowments to a point on the contract curve, only the level of the endowments will determine the new allocation
Indicate whether the statement is true or false
False. The respective bargaining abilities will also play a role in determining the final allocation.
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Maria lives next door to Alice. Alice regularly plays loud music, which often disturbs Maria. Maria went over to Alice's house yesterday and asked her to turn down her music because loud music adversely affects her. Alice has complied. Which of the following best describes the economists' view of what has happened?
A. The marginal social benefits of loud music were greater than the marginal private costs of loud music and the problem was solved by Maria persuading Alice to internalize her (Maria's) external costs. B. The marginal social costs of loud music were greater than the marginal private costs of loud music and the problem was solved by Maria persuading Alice to internalize her (Maria's) external costs. C. The marginal social costs of loud music were greater than the marginal private costs of loud music and the problem was solved through a reassignment of property rights. D. The marginal social costs of loud music were greater than the marginal social benefits of loud music and the problem was solved by Maria persuading Alice to internalize her (Maria's) external costs. E. none of the above
An inelastic supply schedule means that suppliers are unable to substitute away from producing a good in response to a tax
a. True b. False
In the United States, the total amount of work time lost to strikes is less than the amount of work time lost for coffee breaks.
Answer the following statement true (T) or false (F)
Figure 18.3Refer to Figure 18.3. After trade and specialization begin, the maximum amount of pogo sticks that Livonia can consume is:
A. 120. B. 100. C. 80. D. 40.