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Suppose there are three mutually exclusive groups in a particular state. Why is a law banning logging Pareto optimal? Is it Kaldor-Hicks efficient?
Why is the law efficient according to the Pareto criterion? Is it Kaldor-Hicks efficient? Explain. Is it Kaldor-Hicks efficient? Explain.
How does the reasonable person of negligence law relate to the rational decision maker of economics?
Then show how the exchange rate could increase to $1.80 with an increase in volume to 600 million pounds.
In what ways are these objectives compatible, and in what ways are they incompatible?
Discuss the shortcomings of tort liability as the sole means of controlling environmental hazards.
In order for the injurer to face the correct incentives to take care, what should his total damages be in each case where he is held liable?
Why will the woman be able to recover her damages if the court determines that she was negligent for walking on the tracks?
Consider the owner of a large tract of undeveloped land that is suitable for recreational use by campers. Calculate the net benefit from owner fences land.
What is the economic rationale for a statute of limitations for tort suits? Explain why it make sense that there is no statute of limitation for serious crimes.
Why should the court invalidate the contract on the grounds that the buyer had a duty to disclose the information?
What does this information tell you about S's claim that the mistake was mutual?
Why did the promisors offer new consideration in support of the requested price increase in either of these cases?
Provide an economic rationale for this rule based on the trade-off between the cost of drafting contracts and the risk that transactions will not be completed.
Why should this evidence affect the court's decision regarding enforcement of the original contract?
Scheppele (1988, 84) argues that courts require disclosure of deep secrets, those about which the uninformed party has. Why Does this rule make economic sense?
In contract law, promises are enforceable if supported by consideration-that is, if they are mutual. Discuss this distinction from an economic perspective.
What is the buyer's best offer for a parcel if sellers are fully responsible for cleanup costs? What is the buyer's best offer if the buyer is responsible?
Suppose that the average loss from blindness in people under forty. What factors may account for the persistence of an inefficient professional standard?
What is the price of the product, and which consumers purchase it under a rule of no liability? Under strict liability? Which rule yields the efficient outcome?
Using an AD-AS diagram, illustrate and analyze the short-run and long-run impacts of an increase in the money supply.
Discuss what is your average money balance during the pay period? How would each of following changes affect your average monthly balance?
(Active Versus Passive Policy) Contrast the active policy view of the behavior of wages and prices during a contractionary gap to the passive policy view.
Illustrate the effect of an increase in the demand for money. Show how the Fed could act to keep the interest rate constant.
Sketch in an aggregate demand curve and identify the price level. Illustrate the long-run effect of an increase in the money supply.