The Coase theorem states that
A. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
B. if there are external costs in production, the government must intervene in the market to assure that the efficient level of output is produced.
C. under certain conditions, private parties can arrive at the efficient solution without government involvement.
D. public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good.
Answer: C
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A particular good is not scarce when
A) everyone is able to purchase as much of the good as they wish to purchase. B) it is available in large enough quantities to meet everyone's needs. C) no one must sacrifice anything to obtain more of the good. D) there is a surplus of the good.
Which of the following will cause a leftward shift in the aggregate demand curve?
A) a reduction in the money supply B) an increase in taxes C) a reduction in government spending D) all of the above
Low cost strategies are usually found in industries where
a. Products are not particularly differentiated b. Price competition tends to be fierce c. Both a and b d. None of the above
At what rate is GDP growth reported?
a. monthly, at an annualized rate b. quarterly, at a quarterly rate c. monthly at a quarterly rate d. quarterly, at an annualized rate