Assume your roommate is very untidy. According to campus policy, you have a right to live in an uncluttered apartment. Suppose she/he gets a $200 benefit from being untidy but imposes a $100 cost on you. The Coase Theorem would suggest an efficient solution can be reached where:
a. you continue to live with your messy roommate until you are able to make other living arrangements elsewhere.
b
your roommate stops her/his messy habits or you force her/him to move out.
c. you pay your roommate at least $100 but no more than $200 to clean up after (her)himself.
d. your roommate pays you at least $100 but no more than $200 for the right to be untidy (or to have you clean up after her/him).
d
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Which of the following shifts the demand curve for movie downloads rightward?
A) a decrease in the price of downloading a movie B) a 10 percent increase in people's income if movie downloads are a normal good C) a decrease in the price of cable television service D) an increase in the quantity and quality of programming included in the basic cable television service package
According to the law of comparative advantage, individuals and economies should specialize in producing those goods and services in which they have a comparative advantage
a. True b. False