Common ownership may fail to ensure that harvesting of renewable resources does not exceed the maximum sustainable yield
a. True
b. False
Indicate whether the statement is true or false
True
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A nation's gross domestic product (GDP) ________.
A. is always some amount less than its net domestic product B. can be found by summing C + I + G + NX C. is the dollar value of the total output produced by its citizens, regardless of where they are living D. can be found by summing C + S + G + NX
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. How could the owner of a house with a solid foundation credibly signal to potential buyers that the house has a solid foundation?
A. Lower the asking price to $196,000. B. Keep the house on the market for $200,000 because eventually buyers will catch on. C. Simply tell potential buyers that the foundation is solid. D. Offer a warranty to fix any foundation problems that develop in the next 12 months.
Provide an example of a modern day “Tragedy of the Commons,” and explain why it is an example of it.
What will be an ideal response?
If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:
A. will continue to operate at a loss. B. will earn a positive profit. C. will go out of business. D. should decrease price.