Excludability matters because it:
A. allows owners to set an enforceable price on a good.
B. allows consumers to control the price of a good.
C. creates a perceived scarcity that allows the seller to keep the price artificially high.
D. creates a perceived scarcity that causes buyers to have an inelastic demand for the good.
A. allows owners to set an enforceable price on a good.
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Exit of a firm refers to:
A) a short-run decision by a firm to not produce anything. B) a long-run decision by a firm to leave the market. C) a refusal to work organized by a group of employees at the firm. D) an exclusion of employees of a firm from their place of work until certain terms are agreed upon by them.
Describe the criticisms about decision making at the IMF and the World Bank
Which types of policies are thought to reflect bias? What types of costs are not considered? What is the fundamental question critics raise about the operations of the international governmental economic institutions?
Cartels are difficult to maintain in the long run because:
A. they are illegal in all industrialized countries. B. individual members may find it profitable to cheat on agreements. C. it is more profitable for the industry to charge a lower price and produce more output. D. entry barriers are insignificant in oligopolistic industries.
Describe the difference between a command-and-control approach and a market-based approach to reducing pollution.
What will be an ideal response?