One condition for private bargaining to occur, according to the Coase theorem, is that there must be:
A. government creation of a market for externalities.
B. government intervention to establish bargaining.
C. many people affected and involved.
D. clearly established property rights.
Answer: D
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What does unlimited liability mean?
A) The personal assets of the owners cannot be claimed if the business is bankrupt. B) Only employees can have a claim on the assets of the business. C) The owners of the business are personally responsible for paying expenses incurred by the business. D) Anybody with a liability against a firm can claim up to three times their liability.
________ sell shares to investors and use the money to buy short-term securities
A) Mortgage-backed securities dealers B) Hedge funds C) Money market mutual funds D) Shadow banks
Refer to the diagrams for two separate product markets. Assume that society's optimal level of output in each market is Q 0 and that government purposely shifts the market supply curve from S to S 1 in diagram (a) on the left and from S to S 2 in
diagram (b) on the right. The shift of the supply curve from S to S 2 in diagram (b) might be caused by a per-unit:
A. subsidy paid to the producers of this product.
B. tax on the producers of this product.
C. subsidy paid to the buyers of this product.
D. tax on the buyers of this product.
Katie just finished a bottle of Coke. Using the concept of marginal utility, we can say:
A. the utility she will gain if she drinks another will increase her total utility. B. the utility she will gain if she drinks another will be the same as that of her first. C. the utility she will gain may or may not reduce her total utility. D. the utility she will gain if she drinks another will reduce her total utility.