Suppose twenty neighbors share a park. One of the neighbors, Al, leaves trash in the park. This bothers the other neighbors. According to Coase's Theorem, assigning the property rights to the park to Al
A) will achieve the socially optimal quantity of trash.
B) will result in zero trash being dumped in the park.
C) might still not achieve the social optimum since coordinating the other nineteen neighbors can be costly.
D) is unfair.
C
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Answer the next question based on the following list of items that are related to aggregate demand and/or aggregate supply. 1) Government Spending2) Consumer Expectations3) Degree of Excess Capacity4) Personal Income Tax Rates5) National Income Abroad6) Business Taxes7) Domestic Resource Availability8) Prices of Imported Products9) Profit Expectations on InvestmentsWhich combination of factors best explain why the aggregate supply curve would shift?
A. 1 and 2 B. 2 and 9 C. 6 and 7 D. 3 and 5
Recall the Application about the merger of Sirius Satellite Radio and XM Satellite Radio to answer the following question(s).Recall the Application. One might expect no more firms to enter after the market consolidated into one firm because:
A. the fixed cost of setting up a company system and acquiring programing is very high. B. the marginal cost of adding addition subscribers if very high. C. demand is very elastic. D. All of these
Refer to the above table. If the price of the good produced is $10 and the wage rate is $500, then the marginal revenue product of the 5th worker is
A. $50. B. $10. C. $750. D. $4,750.
If you returned a $5 Federal Reserve note to the Fed, you could receive: a. $5 in silver
b. $5 in gold. c. 5 one-dollar bills. d. 10 one-dollar bills. e. a small gold bar.