When no property rights exist
A) no one has an economic incentive to care for common property, and an externality may well occur.
B) there will be no production.
C) externalities will be internalized by voluntary arrangements among a small group of parties.
D) society will produce beyond the production possibilities frontier, but the allocation of resources is not apt to be optimal.
Answer: A
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Personal disposable income is pre-tax income that flows directly to households
Indicate whether the statement is true or false
For given inputs of labor and capital, if technology is more primitive, labor productivity will be
a. higher. b. lower. c. unchanged. d. characterized by increasing returns to scale.
One problem associated with the gold standard was that
A. there was no fluctuation in exchange rates. B. nations gave up control of their money supply. C. nations could not determine their current account balances. D. there was an incentive for individuals to hold gold at all interest rates.
For each of the following changes, what happens to the real interest rate and output in the long run, after the price level has adjusted to restore general equilibrium? How would the results differ, if at all, between the classical and Keynesian model? Draw a diagram for each part to illustrate your result.(a)Wealth rises.(b)Money supply rises.(c)The future marginal productivity of capital increases.(d)Expected inflation declines.(e)Future income declines.
What will be an ideal response?