Answer the following questions true (T) or false (F)
1. Externalities always arise because of a failure of transferability.
2. The capitalized value of a constant stream of $20 per year given an interest rate of 4% per year is $800.
3. The prior appropriation doctrine is a system in which individuals have rights to specific quantities of water and these right can be sold to others.
1. FALSE
2. FALSE
3. TRUE
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The Fed ________ intervene in the foreign exchange market by supplying dollars and the Fed ________ intervene in the foreign exchange market by demanding dollars
A) can; can B) cannot; can C) can; cannot D) cannot; cannot
A golf club manufacturer pays its workers based on the number of sets of clubs they produce. This firm
A) organizes production based on an incentive system. B) organizes production based on a command system. C) does not have any implicit costs. D) does not have explicit costs.