Fishing, the lumber industry, tourism, and even city buildings in Canada are harmed by acid rain, most of which comes from the United States. According to the Coase theorem, the problem is
a. easy to solve because the United States and Canada are geographically close
b. easy to solve because the United States and Canada are allies
c. easy to solve because international property rights are recognized among capitalist countries
d. hard to solve because international negotiations are more costly than domestic ones
e. hard to solve because Canadians have property rights to clean, nonacidic rain
D
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In the 1980s, the USA and the USSR negotiated a reduction in nuclear arms; this is an example of a
A) non-cooperative equilibrium. B) cooperative outcome that may not be a Nash equilibrium. C) cooperative outcome that was a Nash equilibrium. D) sub-game perfect equilibrium.
During the English civil war in the 1640s, the _____ made great inroads into the carrying trade
a. Italians b. Dutch c. Spanish d. French