Refer to Scenario 18.1. If the fishermen are given the right to clean water,
A) the outcome will be more efficient than if the factory is given the right to use the water as it sees fit.
B) the outcome will be less efficient than if the factory is given the right to use the water as it sees fit.
C) the efficient outcome will occur no matter who is given which property right, and the individual gains will be the same in each case.
D) the factory will be forced to shut down.
E) the efficient outcome will occur no matter who is given which property right, but how that maximum gain is split will be determined during bargaining.
E
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During the Revolutionary War, the U.S. trade deficit increased because:
a. U.S. imports decreased, while U.S. exports increased. b. U.S. imports increased, while U.S. exports decreased. c. U.S. exports decreased more than U.S. imports decreased. d. U.S. imports decreased more than U.S. exports decreased.
A large U.S. steel firm wants to restrict imports of Japanese steel, but Ford Motor Company wants fewer restrictions on steel so that the price of steel will go down. This can best be described as
a. a zero-sum game b. a competing-interest situation c. a special-interest situation d. a situation without widespread costs and benefits e. an argument over distribution of a public good