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Concept of externality, property rights also efficient resource allocation
1. Compute: "A bird in the hand is worth six in the bush."
2. Elucidate the concept of externality. Illustrate what does it have to do with the efficient allocation of resources?
3. Private property rights lead to one kind of resource allocation while communally held property rights lead to another. Elucidate. You may use exs.
4. Compute the following: The way to get people to keep future generations in mind as they make current decisions concerning scarce natural resources is to allow them to hold private property rights over these resources, which they can transfer at death to their heirs.
5. Elucidate why do marketplace rates of interest rise whenever people expect increasing inflation in the future?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916379

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