Under what circumstances might it be more effective for people experiencing a negative externality to file a class-action lawsuit than attempt to resolve the problem through bargaining?
What will be an ideal response?
When transactions costs are large, bargaining may not be the most effective way to negotiate a suitable agreement between a polluter and victim. With a class-action lawsuit, expensive legal fees can be spread among the many victims who are a party to the lawsuit, and this would make it much more feasible and affordable for people who have suffered damages to get together with other damaged parties and sue for recovery.
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In the neoclassical growth model without technological progress, the steady-state growth rate of per capita output is
a. the growth of technology plus the growth of population. b. the growth of population. c. the growth of technology. d. the growth of technology plus population plus depreciation.
If a union insists that the employer hire only union members, this is called a
a. union shop b. monopsony c. monopoly d. open shop e. closed shop