Suppose the problem is the stereo noise in the dorm. On the graph on the next page the amplifier dial numbers are located on the horizontal axis. The vertical axis measures the marginal costs and benefits of various levels of music (noise). Also measured on the vertical axis is the marginal cost of insulating the walls to prevent the externalities from penetrating the wall. 
If negotiation costs are zero and she has the property rights to the airwaves, how loud will the music be played?
A. 3
B. 0
C. 4
D. 6
Answer: D
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Which of the following is most likely to indicate a statistically significant regression coefficient?
A) |t| > R2 B) R2 > .90 C) |t| > 2 D) |t| > 4
Which of the following is a benefit of the price system?
A) the existence of positive externalities B) the production of public goods C) Consumers have what they want since politicians and business managers decide what is to be produced. D) the freedom of consumers to decide what they want to purchase
If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,
a. more of the resource should be used b. less of the resource should be used c. the firm should pay a lower price for the resource d. the firm should pay a higher price for the resource e. the firm is using the optimal amount of the resource
What are the three phases of antitrust policy in the United States, since 1890?
a. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, the rule of reason b. 1890 to 1914, per se; 1914 to the early 1980s, the rule of reason; since then, per se c. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, no antitrust policy d. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, a period of rate of return regulation e. 1890 to 1914, the rule of reason; 1914 to the early 1980s, per se; since then, a period of nationalization