Eco 550 Week 7 Quiz 5, Chapter 9

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ECO 550 Week 7 Quiz 5, Chapter 9

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Download answer at http://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-9/
Question 11. Which of the following remedies can be used to prevent the beekeeper and the farmer from breaking the contract?Separating the ownership and management of the bees and trees.Merging the ownership and management of the bees and the trees.Providing the farmer a larger share of the net benefit received from the contract.Providing the bee keeper a larger share of the net benefit received from the contract.Question 21. Which of the following exemplifies inefficient legal assignment of rights with high transaction costs?Agreement between an orchard farmer and a beekeeper.LoJack installation in cars to prevent car theft.The Huntington Beach oil wells.Installation of smog control in cars.Question 31. Which of the following is an aim of a price-fixing agreement?Reducing entry barriersIncreasing profitReducing priceIncreasing demandQuestion 41. How can the government cut the cost of negotiation among car owners regarding LoJack installation?The government can impose a quota on the import of LoJacks.The government can invite public opinion on LoJacks.The government can limit the number of companies producing LoJacks.The government can randomly select cars to install LoJacks.Question 51. Which of the following was an outcome of uncoordinated oil drilling in Huntington Beach, California? AnswerThe entire oil present underground had been extracted within few years.Underground oil pressure had increased due to excessive drilling leading to an oil spill into the adjacent sea.A majority of the oil could not be drilled out as low underground pressure prevented oil from reaching the surface.The oil belt suffered frequent earthquakes as excessive drilling had loosened the soil bonding.Question 61. Which of the following is a new law on fishing imposed by the government to increase the total supply of fish?Holders of fishing rights are not allowed to resell them to others.Governments have issued licenses that limit catches and fishing seasons.Quotas have enforced higher catches in coastal areas.Governments around the world have reduced their offshore jurisdictions.Question 71. In a society, if negotiation among parties leads to a politically unsatisfactory distribution of income:the legislature can enact laws to redistribute this income.the society can on its own reallocate resources to bring about a politically satisfactory outcome.the parties will renegotiate until they reach a politically satisfactory outcome.the parties will refuse to carry out future transactions.Question 81. Government has the power to reduce the _____ associated with air pollution by automobiles because it can force changes in car design, can impose taxes on drivers, and has the power to punish those who fail to comply.Answerprivate costtransaction costopportunity costpositive externalityQuestion 91. Assume that the market for executive travel is perfectly competitive. If the availability of time-sharing reduces transaction costs and the owner’s cost of negotiating for a single trip, which of the following situations must occur?The hours of flight available will increase.The hours of flight available will decrease.The cost of flying will remain steady.The cost of flying will increase.Question 101. If the costs of negotiating and enforcing contracts are _____ relative to the benefits, buyersand sellers have incentives to make economically efficient arrangements that _____ value.high; increaselow; increasehigh, decreaselow; decreaseQuestion 111. According to Coasian reasoning, if negotiation is costless:Answerirrespective of the initial distribution of rights, the efficient outcome will minimize the net benefit of the group.the efficient outcome will minimize the net benefit of the individual who has more rights compared to the others in the group.irrespective of the initial distribution of rights, the efficient outcome will maximize the net benefit of the group.the efficient outcome will maximize the net benefit of the individual who has more rights compared to the others in a group.Question 121. According to economists, an individual who tries to derive utility from the consumption of a good without paying for it is called:Answera utility maximizer.a free rider.an opportunist.a profit maximizer.Question 131. Inclusive property rights provide an investor:Answermore options and greater incentives to avoid inefficient choices.an insight to future earnings and revenue generation.a definite return on the investment.cost effective techniques of production leading to economies of scale.Question 141. The cash or concessions present in contract terms that parties agree to in order to share risks are called: Answerquid pro quos.property rights.flexible takes.contract prices.Question 151. Which of the following is an example of an obligation associated with a right?AnswerProviding adequate notice period to your tenants to vacate your house.Allowing your kids to play with other children in the neighborhood.Allowing neighbors to use your lawn to maintain healthy public relations.Providing proper education and adequate nutrition to your children. 
http://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-9/Download answer at https://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-9/
Question 11. Which of the following remedies can be used to prevent the beekeeper and the farmer from breaking the contract?Separating the ownership and management of the bees and trees.Merging the ownership and management of the bees and the trees.Providing the farmer a larger share of the net benefit received from the contract.Providing the bee keeper a larger share of the net benefit received from the contract.Question 21. Which of the following exemplifies inefficient legal assignment of rights with high transaction costs?Agreement between an orchard farmer and a beekeeper.LoJack installation in cars to prevent car theft.The Huntington Beach oil wells.Installation of smog control in cars.Question 31. Which of the following is an aim of a price-fixing agreement?Reducing entry barriersIncreasing profitReducing priceIncreasing demandQuestion 41. How can the government cut the cost of negotiation among car owners regarding LoJack installation?The government can impose a quota on the import of LoJacks.The government can invite public opinion on LoJacks.The government can limit the number of companies producing LoJacks.The government can randomly select cars to install LoJacks.Question 51. Which of the following was an outcome of uncoordinated oil drilling in Huntington Beach, California? AnswerThe entire oil present underground had been extracted within few years.Underground oil pressure had increased due to excessive drilling leading to an oil spill into the adjacent sea.A majority of the oil could not be drilled out as low underground pressure prevented oil from reaching the surface.The oil belt suffered frequent earthquakes as excessive drilling had loosened the soil bonding.Question 61. Which of the following is a new law on fishing imposed by the government to increase the total supply of fish?Holders of fishing rights are not allowed to resell them to others.Governments have issued licenses that limit catches and fishing seasons.Quotas have enforced higher catches in coastal areas.Governments around the world have reduced their offshore jurisdictions.Question 71. In a society, if negotiation among parties leads to a politically unsatisfactory distribution of income:the legislature can enact laws to redistribute this income.the society can on its own reallocate resources to bring about a politically satisfactory outcome.the parties will renegotiate until they reach a politically satisfactory outcome.the parties will refuse to carry out future transactions.Question 81. Government has the power to reduce the _____ associated with air pollution by automobiles because it can force changes in car design, can impose taxes on drivers, and has the power to punish those who fail to comply.Answerprivate costtransaction costopportunity costpositive externalityQuestion 91. Assume that the market for executive travel is perfectly competitive. If the availability of time-sharing reduces transaction costs and the owner’s cost of negotiating for a single trip, which of the following situations must occur?The hours of flight available will increase.The hours of flight available will decrease.The cost of flying will remain steady.The cost of flying will increase.Question 101. If the costs of negotiating and enforcing contracts are _____ relative to the benefits, buyersand sellers have incentives to make economically efficient arrangements that _____ value.high; increaselow; increasehigh, decreaselow; decreaseQuestion 111. According to Coasian reasoning, if negotiation is costless:Answerirrespective of the initial distribution of rights, the efficient outcome will minimize the net benefit of the group.the efficient outcome will minimize the net benefit of the individual who has more rights compared to the others in the group.irrespective of the initial distribution of rights, the efficient outcome will maximize the net benefit of the group.the efficient outcome will maximize the net benefit of the individual who has more rights compared to the others in a group.Question 121. According to economists, an individual who tries to derive utility from the consumption of a good without paying for it is called:Answera utility maximizer.a free rider.an opportunist.a profit maximizer.Question 131. Inclusive property rights provide an investor:Answermore options and greater incentives to avoid inefficient choices.an insight to future earnings and revenue generation.a definite return on the investment.cost effective techniques of production leading to economies of scale.Question 141. The cash or concessions present in contract terms that parties agree to in order to share risks are called: Answerquid pro quos.property rights.flexible takes.contract prices.Question 151. Which of the following is an example of an obligation associated with a right?AnswerProviding adequate notice period to your tenants to vacate your house.Allowing your kids to play with other children in the neighborhood.Allowing neighbors to use your lawn to maintain healthy public relations.Providing proper education and adequate nutrition to your children. 
https://www.examtutorials.com/course/eco-550-week-7-quiz-5-chapter-9/

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