Rent seeking is more likely to occur in a family when the parents make their inheritance plans clear by telling the children ahead of time that their estate will be divided equally among the children (and that under no circumstances will the parents change their minds) than when there is more uncertainty with regards to the parents' inheritance plans
Indicate whether the statement is true or false
False
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Why are water companies considered a natural monopoly?
What will be an ideal response?
According to Friedman, the apparent conflict between cross-section data which shows a saving rate that varies with income group and time-series data which shows that the saving ratio over the past century is fairly constant is resolved by
A) pointing out that cross-section and time-series data are not comparable. B) interpreting the low saving of poor people as due to the fact that they must buy necessities. C) interpreting the high saving of rich people as due to the transitory nature of much income earned by the rich. D) distinguished between a permanent marginal propensity to consume and a transitory marginal propensity to consume.
Refer to the figure below. The socially optimal quantity of paper is ________ tons per year.
A. 150 B. 360 C. 300 D. 0
Use the figure below to answer the following question.
If a price floor in this market is set at P2, then consumer surplus equals area
A. a + b + d. B. b. C. a. D. a + b.