Three difficulties that limit the usefulness of ownership in resolving incentive problems are:
A. wealth constraints, risk aversion, and free-riding.
B. wealth constraints, risk aversion, and bundling.
C. risk aversion, free-riding, and conflict of interests.
D. wealth constraints, free-riding, and bundling.
Answer: A
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Which type of property would be the most likely to experience pollution?
A) common property B) private property C) property held in partnership D) corporate property
Other things the same, a country that decides to reduce inflation will
a. have a higher unemployment rate in the short run and the long run. b. have a higher unemployment rate only in the long run. c. have a higher unemployment rate only in the short run. d. not have a higher unemployment rate in either the short run or the long run.
Exhibit 7-3 Cost per unit curves
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As shown in Exhibit 7-3, the firm will produce in the short run if the price is at least equal to:
A. $1.00 per unit (point A). B. $1.50 per unit (point B). C. $2.00 per unit (point C). D. $4.00 per unit (point D).
Which one of the following would cause an increase in the supply of planes?
A) a decrease in the demand for planes B) an increase in the price of planes C) an increase in taxes applied to plane producers D) an improvement in the technology used to produce planes