Dee loves to landscape her yard, but her neighbor Marvin places a low value on his landscaping. When Marvin's grass is neglected and gets long, Dee will mow it for Marvin. This is an example of
a. a situation in which the Coase theorem fails to explain the lawn mowing arrangement.
b. an improper allocation of resources.
c. a private solution to a negative externality problem.
d. an exploitation of a common resource.
c
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Refer to the Article Summary. Explain how the declining labor force could have led to the decrease in the unemployment rate
What will be an ideal response?
Consider a supply curve of the form: Q = c + dP. If d equals zero, then supply is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) elastic, but not infinitely elastic. D) infinitely elastic
The statement, "Violent crime has decreased in the last five years," is:
A. obviously wrong and, therefore, cannot be a positive statement. B. normative since it can be answered by simply looking at the facts. C. positive because it is testable. D. not very interesting because all normative issues are of little importance.
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be lemons (low quality)?
A. 10/25 B. 10/35 C. 25/35 D. All of the cameras sold will be lemons.