When negative externalities exist, a voluntary agreement can be negotiated. Which of the following statements is TRUE?
A) Voluntary agreements usually do not work since the owner has no incentive to negotiate.
B) Transactions costs must be low relative to the expected benefits of reaching an agreement.
C) Voluntary agreements are difficult to negotiate because they usually involve government intervention.
D) Voluntary agreements always leave the owner worse off.
B
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One assumption that economists often make about people is that they are ________
A) risk-neutral B) risk-averse C) risk-seeking D) rent-seekers
The full employment level of real GDP can be represented on an aggregate supply and demand diagram as a(n):
a. vertical line. b. upward-sloping line. c. horizontal line. d. downward-sloping line.
Supporters of globalization argue that multinational firms pay higher wages than local firms, and provide greater benefits for workers than existed in the country prior to globalization
a. True b. False Indicate whether the statement is true or false
Oligopoly arises with scale economies that are not large enough to cause a natural monopoly.
Answer the following statement true (T) or false (F)