Suppose a large tree on Adam's property blocks Eve's view of the ocean. Adam accepts Eve's offer of $15,000 to cut down the tree. This is an example of
A) internalizing externalities via voluntary agreements.
B) a result of logrolling.
C) a consequence of a positive externality.
D) a consequence of private costs exceeding social costs.
A
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There is considerable evidence to support the assertion that legislated input combinations have reduced the costs of production in affected industries
Indicate whether the statement is true or false
Assume the reserve requirement is 25 percent, demand deposits are $500 million, and total reserves are $32 million. If the reserve requirement is decreased to 20 percent, the banking system will experience
A. Excess reserves equal to $68 million. B. Excess reserves equal to $32 million. C. No change in the lending capacity. D. A deficiency of required reserves equal to $68 million.