Under Scenario 18.1, suppose the body of water lies on an international boundary, and the fishermen speak a different language than the factory managers. The efficient outcome cannot be achieved if the cost of hiring translators for both parties:
A) is less than $4,000.
B) equals $5,000.
C) is greater than $6,000.
D) none of the above
C
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When viewed as a tangible asset, real estate can be defined as the land and its permanent improvements. Improvements on the land include:
A. fences B. walkways C. sewer systems D. streets
Rent seeking
A. often entails large opportunity costs. B. prevents waste of resources. C. often promotes fairness in distribution of resources. D. cannot occur in a planned economy.
Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly wage rate of $17.85 while the market equilibrium hourly wage rate is $16.50, the:
A. quantity of workers supplied will exceed the quantity of workers demanded. B. supply of labor will decrease until the equilibrium wage rate is $17.85. C. demand for labor will increase until the equilibrium wage rate is $17.85. D. quantity of workers demanded will exceed the quantity of workers supplied.
The evidence suggests that in rich countries, a depreciation
A) immediately improves the trade balance. B) eventually improves the trade balance. C) first improves, but then worsens the trade balance. D) has no effect on the trade balance. E) none of the above