If a developer plans to build a skyscraper in a major city overshadowing an historic church, could an efficient solution be reached if the church had the legal right to prevent the developer from building in that location? Why or why not?
Yes, an efficient solution could be reached if the property rights were well established. In this case, if the builder's value of developing the site was greater than the church's value of no development, the builder could potentially compensate the church for an amount that would make both parties better off.
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For any item (physical or financial) to be used as money, the item must be
a. a precious metal, such as gold or silver b. accepted as a medium of exchange c. divisible into smaller units by at least 10, otherwise most exchanges cannot occur, rendering useless the money form d. paper (fiat) backed by a precious metal e. portable
Loans made between borrowers and lenders are:
A. usually not taxable at the federal level. B. legal only in the state of origination. C. assets of the borrowers. D. assets of the lenders.