Which of the following exemplifies inefficient legal assignment of rights with high transaction costs?
a. Agreement between an orchard farmer and a beekeeper.
b. LoJack installation in cars to prevent car theft.
c. The Huntington Beach oil wells.
d. Installation of smog control in cars.
C
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The above (incomplete) table provides information about the relationships between labor and various product measures. The total product that can be produced with 6 units of labor is
A) 20. B) 19. C) More information is needed to answer the question. D) None of the above answers is correct.
All of the following are characteristics of stock except
A) stock does not represent a promise to repay a fixed amount of funds. B) stock promises to repay a fixed amount to of funds to stock owners. C) stock represents ownership in a firm. D) dividends paid to owners of stock represent a firm's profits.
Given the consumption function C = $100 billion + 0.75 ($300 billion), autonomous consumption is equal to:
a. $100 billion. b. $225 billion. c. $300 billion. d. $325 billion. e. $400 billion.
Which of the following is a legal remedy for a breach of the contract between parties?
a. Liquidated damages b. Imprisonment c. Unitization d. Specificity