The catch of American lobster off the shores of New England is regulated using quotas. If the quota is set correctly, then at this quantity, the marginal social cost ________ the marginal social benefit
A) is less than
B) is greater than
C) is not comparable to
D) equals
D
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When having a choice of which estimator to use with a binary dependent variable, use
A) probit or logit depending on which method is easiest to use in the software package at hand. B) probit for extreme values of X and the linear probability model for values in between. C) OLS (linear probability model) since it is easier to interpret. D) the estimation method which results in estimates closest to your prior expectations.
Thousands of Japanese fishermen have used gill nets to catch tuna with great efficiency. Many environmentalists have objected to this practice since many other marine animals (such as dolphins and sharks) are killed by the nets and discarded by the fishermen. Which of the following statements is most accurate? a. A private solution can be reached through negotiation between the fishermen and the
environmentalists. b. A private solution is not practical due to the large number of individuals affected. c. The market price of tuna is higher than the socially optimum price of tuna. d. A private solution to this problem would not affect the price of tuna.
A demand curve with continuously changing slope over all quantity values will always have a price elasticity of demand equal to infinity.
Answer the following statement true (T) or false (F)
"Inflation reduces the velocity of money because people reduce their money holdings." Is the previous statement correct or incorrect? Explain your answer
What will be an ideal response?