June owns a farm, and has a right to spray it with pesticides. Unfortunately, the pesticides kill her neighbor’s bees and cost him $5,000 per year. June can use a spray that does not harm the bees for a cost of $2,000 more per year. What can June’s neighbor do that would demonstrate the Coase theorem?
a. Sue June for the $5,000 in damages.
b. Offer June $3,500 to spray the bee-friendly spray.
c. Find a way to do $5,000 damage to June’s farm.
d. Offer to pay $1,000 toward the bee-friendly spray.
b. Offer June $3,500 to spray the bee-friendly spray.
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As the economy enters a strong expansion in which real GDP increases, which of the following occurs?
A) The demand for money decreases and there is a movement upward along the demand for money curve. B) The demand for money increases and there is a movement downward along the demand for money curve. C) The demand for money curve shifts rightward. D) The nominal interest rate falls as the demand for money curve shifts leftward. E) The demand for money curve shifts leftward.
The Internet has made it possible to compare lots of prices without incurring a lot of cost. If Internet access is unequally distributed throughout the population, one would expect
A) consumers with Internet access to pay a higher price. B) consumers without Internet access to pay a lower price. C) price discrimination against consumers without Internet access. D) firms to charge the same price to all consumers.
Which of the following World War I (1914–18) institutions reappeared in various forms during the Great Depression and/or World War II (1941–45)?
(a) The U.S. Grain Corporation (b) The War Industries Board (c) The United States Housing Corporation (d) All of the above
If Happy Campers has a market share of 55 percent and Campers R Us has a market share of 15 percent, according to Chinese law, Happy Campers ________ be considered a dominant firm and Campers R Us ________ be considered a dominant firm.
A) would not; would not B) would not; would C) would; would D) would; would not