Wally owns a dog whose barking annoys Wally's neighbor, Corrine. Suppose that the benefit of owning the dog is worth $700 to Wally and that Corrine bears a cost of $500 from the barking. Assuming Wally has the legal right to keep the dog, a possible private solution to this problem is that
a. Wally pays Corrine $600 for her inconvenience.
b. Corrine pays Wally $400 to give the dog to his parents who live on an isolated farm.
c. Corrine pays Wally $550 to give the dog to his parents who live on an isolated farm.
d. The current situation is efficient.
d
Economics
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A common tool for restricting trade through taxation is:
A. a tariff. B. immigration restrictions. C. international waters use policies. D. quota.
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When future labor income falls in a large open economy, it causes the current account to ________ and investment to ________.
A. fall; rise B. rise; rise C. fall; fall D. rise; remain unchanged
Economics