The scale economies index (SCI) is equal to:
A) the cost-output elasticity.
B) one minus the cost-output elasticity.
C) 100 times the degree of economies of scope (SC).
D) marginal cost divided by average cost.
B
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A positive theory of common law, in which the positions of the courts are predicted based on the assumption that they are attempting to promote efficiency, is proposed by
a. Pigou. b. Coase. c. Posner. d. Epstein.
Refer to Figure 18-1. Area E + H represents
A) the portion of sales tax revenue borne by consumers. B) the portion of sales tax revenue borne by producers. C) the excess burden of the sales tax. D) sales tax revenue collected by the government.
The argument that developing countries with lax environmental standards will attract foreign manufacturers who want to escape stricter standards in their own countries is known as
A) the pollution havens hypothesis. B) the escape clause hypothesis. C) the earth destruction hypothesis. D) the environmentally destructive hypothesis.
Using a good as a medium of exchange confers the benefit that
A) the need to quote so many prices in trade is reduced. B) the need for a double coincidence of wants is greatly increased. C) the need for specialization is reduced. D) transactions costs are increased, but they now may be paid in money terms.