Fish in the ocean would be considered:
A. a common resource.
B. a public good.
C. a private good.
D. an artificially scarce good.
Answer: A
You might also like to view...
Julie is the chief executive officer (CEO) of the Black Gold Corporation and is also on the company's board of directors. Julie is considered ________ of the corporation
A) an outside director B) a stockholder C) an owner D) an inside director
The Coase Theorem works best in places that transaction costs for contracts among people is low. Often in the world of torts and externalities both parties can claim that they have rights to impose on others. One case is that of a railroad that is noisy and scares the cattle and the rancher whose cattle sometimes wander in front of moving trains causing damage to them and the train. What does the
Coase say would happen? a. The train should have property right to be safe from wandering cattle, and the rancher should be liable for train damage of rampaging cattle. b. The rancher should have the property right to be safe from noisy trains, and the railroad should be liable for weight loss of cattle from train whistles and rumbling noise. c. If transaction costs are low, the efficient activity will occur, either the rancher or railroad installing fences to protect from rampaging cattle and/or sound insulation with trees, or if it is cheaper, fewer train trips per day. The cheapest or most efficient solution will happen, regardless of who is assigned the original property right.
Assuming the free flow of capital across borders, explain why a country that has a fixed exchange rate cannot have an independent monetary policy reaction curve.
What will be an ideal response?
An increase in taxes will cause
A) a reduction in investment. B) an increase in investment. C) no change in investment. D) no change in autonomous spending.