Near an ocean beach, a high-rise building is being constructed that will block the scenic view of the ocean by the residents of a low-rise building. The Coase theorem suggests that this type of dispute between the owners of high-rise and low-rise buildings would best be resolved by:
A. city government officials.
B. a government fine for the builder of the high-rise.
C. a zoning ordinance restricting high-rise buildings.
D. the owners themselves.
Answer: D
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In Watermala, the marginal propensity to consume is 0.6, base consumption is $1,000 . the tax rate is 30 percent of income, national income is $5,000 . investment spending is $800, government spending is $1,500, export earning is $1,000 . and import spending is $500 . Given this information, Watermala's aggregate expenditure equals _____
a. $5,900 b. $7,800 c. $3,900 d. $10,300
Refer to the diagram below of the market for corn. If the price in this market is at $4 per bushel, then there will be a:
A. Surplus and the price will tend to rise
B. Shortage and the price will tend to rise
C. Surplus and the price will tend to fall
D. Shortage and the price will tend to fall
Until the _______, most Americans had an unfavorable opinion of labor unions.
Fill in the blank(s) with the appropriate word(s).
When a rent ceiling is ________, consumer surplus and producer surplus shrink, a deadweight loss ________, and resources are lost in search activity and evading the rent ceiling law
A) inefficient; arises B) inefficient; disappears C) efficient; arises D) efficient; disappears E) nonexistent; arises