Which of the following is most likely to reduce the consumption of an exhaustible natural resource?
A. A decrease in monopoly control of the market for the resource
B. Government tax policies that give tax breaks to entrepreneurs who search for new reserves of the resource
C. Implementation of a price ceiling for the resource below its equilibrium price
D. Government macroeconomic policies that lower the interest rate on bonds
Answer: C
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A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that
A) anyone can be made better off. B) no one can be made worse off. C) someone can be made better off without making someone else worse off. D) someone can be made better off without making everyone else worse off.
The three legs of the organizational stool are reward systems, performance-evaluation systems, and
A. communication. B. market structure. C. decision rights. D. sunkcosts.