Suppose an astronomer discovers gold on the moon. Would this gold add to the world reserves?
A) Yes, we know it exists and we could recover it.
B) No, we know it exists but we can't extract the gold.
C) No, there are no established property rights over the moon so they cannot add to world reserves.
D) Yes, but only if the astronomer is the resident of a developed country with well-established property rights.
A
You might also like to view...
Robert got a new job and relocated to a different city. He initially decided to rent a small apartment close to his office
However, he decided to live in a much bigger and costlier apartment when he found out that his employer will pay him a house rent allowance. This is an example of ________. A) adverse selection B) moral hazard C) the prisoners' dilemma D) the free-rider problem
A principal-agent problem arises in the situation in Scenario 17.5 because
A) the principal can measure effort and output; the agent can measure only output. B) the principal can measure only effort, and the agent can measure only output. C) the principal can measure only output, and the agent can measure effort and output. D) neither the principal nor the agent can measure effort. E) neither the principal nor the agent can measure output.