In the case in Scenario 18.1, the Coase theorem specifies that
A) the result will be different if the fishermen are given the right to clean water than it will be if the factory is given the right to use the water as it sees fit, but the result will be inefficient in either case.
B) the efficient result will occur whether the fishermen are given the right to clean water or the factory is given the right to use the water as it sees fit.
C) economic efficiency requires that the fishermen be given the right to clean water.
D) economic efficiency requires that no one may contaminate the water.
E) economic efficiency requires that the fishermen be given the right to clean water and that the factory be given the right to use the water as it sees fit.
B
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The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. Based on the data in the table, production of fertilizer has
A) external benefits. B) external costs. C) no externalities. D) constant returns to scale.
According to the Gordon-Growth model, what will be the percentage change in the value of a stock of a company whose current dividend is $10.00 and whose dividends had been expected to grow by 3% but now are expected to grow by 4% per year?
A) 4.0% B) 17.8% C) 25.0% D) 33.3%
Which concept springs to mind when thinking of the classical model?
a. Inflation. b. Population growth. c. Markets clear. d. The microeconomy. e. Money supply.
The demand for labor is derived from the
a. demand for leisure. b. supply of labor. c. demand for final-output goods. d. supply of final-output goods.