Your Roommate Has the Right to Play Her Harmonica During

question 257

Multiple Choice

Your roommate has the right to play her harmonica during the day. But you find the best time to study is during the day, and the harmonica playing makes it hard for you to concentrate. You tell your roommate that you will do her laundry every week if she does not play the harmonica during the day and she agrees to this. This is an example of

• A) the drop-in-the-bucket problem.
• B) liability rules.
• C) the Coase theorem.
• D) an injunction.

---

Definitions:

Goods In Process Inventory

Partially finished goods that are still in the production process at the end of an accounting period.

Finished Goods Inventory

Products that have completed the manufacturing process but have not yet been sold to customers.