One difficulty in managing common property resources is that
A) the monopoly firm that owns such a resource typically has great economic power, so that breaking it up into smaller firms is not practical.
B) the monopoly firm that owns such a resource typically is a natural monopoly, so that it is undesirable to break it up into smaller firms.
C) many common property resources are so small that management would have to be done on a micro level, greatly increasing government activity in the economy.
D) many common property resources are so vast that single ownership or management of them is not practical, especially if they cross international borders.
E) more and more of them come into being as pollution increases.
D
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Equilibrium
What will be an ideal response?
Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel.
Figure 16.4Refer to Figure 16.4. Suppose the government assigns property rights to the airlines. No
negotiations occur between the parties. The resulting level of air travel is A. 0 units. B. 100 units. C. 120 units. D. Indeterminate from the given information.
The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. On the basis of this illustration, we can conclude that:
A. short-run adjustments are more economically efficient than are long-run adjustments.
B. the amount of time producers have to adjust to a change in demand is not a determinant of
supply elasticity.
C. supply is more elastic the greater the amount of time producers have to adjust to a change
in demand.
D. supply is less elastic the greater the amount of time producers have to adjust to a change
in demand.
________ in economics is a measure of satisfaction or happiness that comes from consuming a good or service
A) Budget B) Utility C) Income effect D) Substitution effect