You accidentally run into your next door neighbor's fence and destroy it. Your neighbor sues you and you are required to pay $1,000 to repair the fence. This is an example of
A. the Coase theorem.
B. a liability rule.
C. the free-rider problem.
D. an injunction.
Answer: B
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The figure above shows the market for milk in Cowland. If a subsidy paid to producers of $1 per gallon of milk is introduced, what is the price that consumers pay?
A) $3.00 a gallon B) between $3.00 and $4.00 per gallon C) $4.00 a gallon D) between $4.00 and $5.00 per gallon
Producer surplus is the:
a. amount by which the quantity supplied of a good exceeds the quantity demanded of a good. b. measure of producers' willingness to sell a good plus the price of the good. c. measure of how much producers value a good. d. amount consumers actually pay for a good minus the amount the sellers are willing to sell the good.
The market structure in which each firm has a monopoly over the product it makes, but many other firms make similar products that compete for the same customers is called
In Zimbabwe, at the height of the feedback loop:
A. prices were increasing by 7.6 billion percent per month. B. real GDP was increasing by 7.6 billion percent per month. C. the money supply was increasing by 7.6 billion percent per month. D. the velocity of money was increasing by 7.6 billion percent per month.