Suppose that Pat has the legal right to fly an extremely noisy airplane over Chris's apartment and that he values that right at $1,000 per year. Chris would be willing to pay $800 per year to avoid the noise. In this case,
a. Pat will be required to eliminate the overflight
b. Chris will move to a new apartment
c. Pat and Chris have a powerful incentive to eliminate the overflight because both would benefit from it
d. some governmental agency will step in to require Pat to choose a different flight pattern
e. there is no basis for an agreement to eliminate the overflight
E
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Which of the following statements is true?
A) The growth rate of South Korea has been less than the growth rate of the United States over the last 40 years. B) The United States and the United Kingdom have recorded a growth rate of over 10% per annum in the last 40 years. C) The gap between the GDP per capita of the United States and Singapore has increased over the last 40 years. D) The gap between the GDP per capita of the United States and China has decreased over the last 40 years.
Which of the following would be a deadweight loss from a tariff?
A) The shift of consumer surplus to government B) The increase in producer surplus C) The decrease in consumer surplus D) The decrease in consumer surplus due to a drop in consumption E) All of the above.