You accidentally jump the curb and run over your neighbor's extensive garden gnome collection. Your neighbor sues you and you are required to pay $3,000 to replace the gnomes. This is an example of
A. a liability rule.
B. the Coase theorem.
C. the free-rider problem.
D. an injunction.
Answer: A
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The "law of demand" is illustrated by a
A) rightward shift of the demand curve. B) leftward shift of the demand curve. C) movement along the demand curve. D) Both answers A and B are correct.
The government agency that provides insurance for all checkable deposits up to $100,000 in banks choosing its protection is the:
a. Federal Deposit Insurance Corporation. b. Federal Reserve. c. Office of Management and Budget. d. Treasury. e. Securities and Exchange Commission.
Which of the following would shift the production function downward?
a. An improvement in technology b. A decrease in the interest rate c. An increase in number of workers d. An increase in the stock of human capital e. A decrease in the stock of physical capital
A mixed economy is one that combines public and private ownership of property
a. True b. False Indicate whether the statement is true or false