Author Question: A TV actor used to be a teacher. Aside from the salary, he likes both jobs equally well. If he can ... (Read 57 times)

Jipu 123 · **on:** Jun 30, 2018

A TV actor used to be a teacher. Aside from the salary, he likes both jobs equally well. If he can earn 50,000 as a teacher and 300,000 as an actor, what are his economic rent and opportunity costs as an actor?
a. Economic rent is 250,000 . opportunity costs are 50,000.
b. Economic rent is 50,000 . opportunity costs are 250,000.
c. Economic rent is 50,000 . opportunity costs are 300,000.
d. Economic rent is 300,000 . opportunity costs are 50,000.
e. Economic rent is 300,000 . opportunity costs are 350,000.

Question 2

The Coase theorem says that, if the appropriate property right is assigned to __________, an efficient solution to an externality problem will be achieved.
a. the party causing the externality
b. the victim of the externality
c. the party that can avoid the externality at the higher cost
d. the party that can avoid the externality at the lower cost
e. either one of the parties involved