The above figure shows the production possibility frontier for a country. What is the opportunity cost per ton of rice to move from point B to point D?
A) 500 bottles of wine
B) 2 bottles of wine
C) 1/2 of a bottle of wine
D) 1000 bottles of wine
E) None of the above answers is correct.
A
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Consider a good whose own price elasticity of demand is 0 and price elasticity of supply is 1. The fraction of a specific tax that will be passed through to consumers is ________
A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1
The creation of private property rights corrects negative externality problems in many cases because they
a. cannot create negative externalities b. create a strong incentive for the private owners to maintain the property c. can force the government to compensate the owners for the externality costs d. encourage people to become free riders e. always lead to the social optimal price and output levels