Suppose that Pat has the legal right to fly an extremely noisy airplane over Chris's apartment and that he values that right at $1,000 per year. Chris would be willing to pay $800 per year to avoid the noise. In this case,
a. Pat will be required to eliminate the overflight
b. Chris will move to a new apartment
c. Pat and Chris have a powerful incentive to eliminate the overflight because both would benefit from it
d. some governmental agency will step in to require Pat to choose a different flight pattern
e. there is no basis for an agreement to eliminate the overflight
E
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The expansion of governmental direct controls over the economy which characterized the "New Frontier" and "Great Society" programs of the Kennedy-Johnson years was continued and expanded by the Nixon Administration
Indicate whether the statement is true or false
The basic economic problem is:
a. inflation. b. unemployment. c. poverty. d. scarcity. e. lack of money.
Which is a characteristic of a public good?
A)non—excludability B)excludability C) rivalry among firms D) no free-rider problem
If a motorist is stranded in front of a pay phone and has only dollar bills, and he ends up buying a quarter from a passerby for $1,
a. the stranded motorist must not understand that four quarters are worth $1. b. economic theory is unable to explain this transaction. c. both parties have gained from this exchange. d. the passerby was made better off and the motorist worse off.