Describe the conditions under which a common resource is used efficiently
What will be an ideal response?
A common resource is used efficiently when the marginal social benefit equals the marginal social cost at the quantity produced.
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The difference between the Keynesian and classical labor supply functions is that in the Keynesian version
a. workers know the real wage while in the classical system workers must form an expectation of the price level. b. workers must form an expectation of the price level while the workers know the real wage in the classical system. c. workers are assumed to be interested in the money wage while in the classical version workers know the real wage. d. labor supply depends on the actual real wage while labor supply depends on the expected real wage in the classical system.
You can capture a bigger piece of the pie if
a. You can decrease your counter party's gains from reaching an agreement b. You can increase you gain from reaching an agreement c. All of the above d. None of the above