Which of the following statements is false?
A. Government can remove individuals from a prisoner's dilemma setting and make them better off.
B. In a prisoner's dilemma setting, it is impossible for the government to define and enforce property rights that the individuals involved in the setting want to have defined and enforced.
C. As long as government charges each individual in a prisoner's dilemma setting a tax that is less than the gain received by being removed from the setting, then government has made the individuals better off.
D. Depending upon the amount of the tax charged to each individual in a prisoner's dilemma setting, the government can make both persons better off, both persons worse off, or one person better off and the other person worse off.
Answer: B
You might also like to view...
As banks lend money in the form of checking accounts:
a. M2 money supply rises when the loan is made and then falls when the loan is spent. b. M2 money supply rises when the loan is made and then falls when the loan is cleared. c. M2 money supply does not change. d. M2 money supply rises when the loan is made and stays at that level until the loan is repaid. e. M2 money supply rises when the loan is made and permanently stays higher until the central bank reverses it.
Answer the next question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Which of the following is true?
A. For the West region, the cost of 5 units of clothing is 10 units of food. B. For the East region, the cost of 8 units of food is 8 units of clothing. C. For the West region, the cost of 15 units of food is 5 units of clothing. D. For the East region, the cost of 4 units of clothing is 6 units of food.