The Coase theorem asserts that under certain conditions, the property rights to an activity will be acquired by the party that values it most
Indicate whether the statement is true or false
TRUE
You might also like to view...
Which of the following would most likely move the economy into a recession in the short term?
A. The central bank printing less money than was expected. B. Invention of a new product that most consumers want to buy. C. Innovations in management that enhance worker productivity. D. Congress passing a reduction in personal income tax rates.
A production possibilites frontier is a strait line when
a. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. b. an economy is interdependent and engaged in trade instead of self-sufficient. c. the rate of tradeoff between the two goods being produced is constant. d. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.
According to the structural stagnation theory,
A. U.S. economic growth will never return to the world average growth rate, because foreign economies have so far to catch up. B. U.S. economic growth will return to the world average growth rate, but by that time, the U.S. share of world output will have declined. C. U.S. economic growth will return to the world average growth rate, and its current share of world output will remain unchanged. D. After a period of slower growth, U.S. economic growth will exceed world growth.
The law of supply indicates that:
A. producers will offer more of a product at low prices than they will at high prices. B. consumers will purchase less of a good at high prices than they will at low prices. C. the product supply curve is downsloping. D. producers will offer more of a product at high prices than they will at low prices.