Assume a lawyer signs a contingency fee contract with a plaintiff. The case ends up settling for $1 million, of which the plaintiff received $800,000. It is obvious this contract was efficient
A) True, the plaintiff received some money.
B) False, it is not clear whether another lawyer would have settled for more.
C) False, it is not clear whether the plaintiff's lawyer is very smart.
D) True, the plaintiff and lawyer reached an agreement and both lived up to their end of the agreement.
B
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The merchandise trade balance measures
a. the value of goods and services exported b. the value of all goods and services exported minus the value of all goods and services imported c. the value of all goods and services exported minus the value of all goods and services imported, and transactions to finance the difference d. the value of all tangible products exported minus the value of all tangible products imported e. the value of all tangible products exported minus the value of all tangible products imported, and transactions to finance the difference
The U.S. tax burden is
a. about the same as most European countries. b. higher than most European countries. c. lower than most European countries. d. higher than all European countries.
Will reducing pollution to zero in a particular industry be economically efficient?
a. Never b. Always c. Yes, as long the marginal costs of pollution reduction exceed the marginal benefits d. Yes, as long as the marginal benefits of pollution reduction exceed the marginal costs e. Yes, as long as the total benefits of pollution reduction exceed the total costs
Households
A) have no involvement in the circular flow in a market economy. B) purchase resources in the factor market. C) sell goods in the product market. D) sell resources in the factor market.