A homeowner, frustrated with his next-door-neighbor's refusal to mow his lawn, decides he wants to purchase the house from his neighbor and rent it to a more conscientious person, but his neighbor refuses to sell. In this case,

A) eminent domain would likely be used to reduce transactions costs.
B) eminent domain would likely be used to reduce the holdout problem.
C) eminent domain would not likely be used.
D) eminent domain would likely be used because this transaction would increase cooperative surplus.

C

Economics

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What are some of the common arguments against free trade?

What will be an ideal response?

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When the federal government orders firms to use particular methods to reduce pollution, it is said to be using

A) market-based policies. B) global initiatives. C) strong-arm tactics. D) command-and-control policies.

Economics