A chemical factory and a fishing club share a lake. Producing chemicals creates water pollution that harms the fish. Initially the lake is owned by no one
Keeping in mind the Coase theorem, suppose transactions costs are low and the fishing club is given ownership of the lake. Compared to the situation with no property rights, the quantity of chemicals produced A) will decrease.
B) will stay the same.
C) will increase.
D) changes, but the direction of the change is ambiguous.
A
Economics
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What assumption results in investment depending only on the nominal interest rate?
a. rationality b. zero inflation c. uncertainty d. The MPC is less than 1.
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In the quantity equation MV = PT, V is the:
A. income velocity of money. B. transactions velocity of money. C. inflation rate. D. value of the money supply.
Economics