The existence of externalities is due mainly to the fact that
A) monopolies tend to produce too little of a good anyway.
B) the optimal level of pollution is zero.
C) pollution is not a serious problem.
D) property rights are poorly defined.
D
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A legal system that provides secure private property rights and unbiased enforcement of contracts
a. is unnecessary for the smooth operation of markets. b. reduces the efficiency of markets. c. enhances the efficiency of markets. d. makes it easier for sellers to cheat or defraud consumers.
The principal-agent problem refers to the problem of:
A. Communication between sports and entertainment stars with their agents B. How to split profits between labor and management C. The interests of delegates deviating from the interests of the delegators D. How stockholders of a corporation can elect a board of directors
When the nominal interest rate is ________ the equilibrium interest rate, the quantity of money demanded is less than the quantity of money supplied; when the nominal interest rate is ________ the equilibrium interest rate, the quantity of money
demanded exceeds the quantity of money supplied. A) equal to; less than B) less than; greater than C) greater than; equal to D) equal to; greater than E) greater than; less than
The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false