For voluntary action to correct an externality
A) transaction costs have to be high.
B) transaction costs have to be low.
C) transaction costs have to be split evenly between all of the parties involved.
D) transaction costs are irrelevant.
Answer: B
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Effects of a subsidy
What will be an ideal response?
Which of the following best fits the definition of unemployed?
A) retired and not working B) working less than a full work week C) not working but looking for a job D) not working at a gainful pursuit, either in or out of the home
The leading producer of manufactured goods in 1900 was
a. the United States. b. Germany. c. England. d. Canada.
When a domestic country exports goods to and imports goods from a foreign country, in the short run domestic:
A) producers in the exporting industry may be worse off. B) consumers of the imported good may be worse off. C) consumers of the exported good may be better off. D) producers in the importing industry may be worse off.