Private solutions to the problem of externalities are most likely when
A) transactions costs are low and the number of bargaining parties is small.
B) transactions costs are low and the monetary damages to third parties are high.
C) government actively encourages these solutions.
D) transactions costs are low and the number of bargaining parties is large.
A
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To help pay for the cost of sport related injuries, the government imposes a tax on sellers of all sports equipment. Referring to the above figure, how much tax per unit has the government imposed?
A) cb B) db C) ab D) ca
Tariffs contribute to higher prices of textile products imported into the United States, but import quotas on textiles brought into the United States do not
a. True b. False Indicate whether the statement is true or false
As the price level falls, buyers require less money for their purchases and the demand for money falls. A decrease in the demand for money will cause business investment to increase. This is called the _____
a. interest rate effect b. exchange rate effect c. wealth effect d. accelerator effect
Other things equal, when the supply of workers is scarce, one would predict that market wages would be
a. relatively high. b. relatively low. c. determined solely by factors that affect demand. d. determined outside the domain of economic theory.