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problem1:

a) Why will a person who has transferable (or saleable) property rights in a business for which he is making decisions, be more affected by the longer run effect of his decisions than if he didn’t encompass transferable property rights in the business?

b) Describe the affect that transferable property rights versus non-transferable property rights, includes on the individual decision making.

problem 2:

Long ago we stated that the reason for labor organizations. We state that they were organized out of the requirements of the situation; that a single employee was helpless in dealing with the employer; that he was dependent ordinarily on his every day wage for the maintenance of himself and his family; that if the employer refused to pay him the wages that he thought fair, he was nonetheless not able to leave the employer and resist random and unfair treatment; that a union was necessary to give laborers opportunity to deal on an equality with their employer. This statement was made by the Chief Justice Charles Hughes, of the Supreme Court of the United States in the case of United States v. Jones and Laughlin, 1937. Assess Chief Justice Hughe’s propositions for their meaning.

problem 3:

A big lake is stocked with excellent fish; however no one owns the fish or the lake. Only by catching the fish can you get the ownership of fish.

a) What do you suppose will be the average age of fish caught as compared to the age of fish in privately owned lake?

b) Which system will induce over fishing in the sense that more of the resources will be devoted to catching fish than the additional fish caught are worth? describe why?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M910131

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