If ________ bargaining to resolve an externality is to result in an efficient outcome, the initial assignment of rights must be clear to ________ parties.
A. private; both
B. public; at least one
C. private; at least one
D. public; only government-sponsored
Answer: A
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Countries in which wages adjust rapidly to changes in the supply and demand for labor are likely to have ________ sacrifice ratio
A) an infinite B) a high C) a low D) a negative
How does this graph show an increase in total revenue?
a. Area a is larger than area c.
b. Area b is larger than area a.
c. Area c is smaller than area b.
d. Area b is equal to area a.
Demand is more inelastic in the short term because consumers:
A. are present-oriented. B. have no time to find available substitutes. C. are impatient. D. None of the statements is correct.
Technological lock-in:
A. is no longer possible because of the development of network externalities. B. occurs when standardization on a technology blocks the adoption of more efficient technologies. C. occurs when network externalities are absent. D. increases the efficiency with which technology is used.