The Coase theorem asserts that private economic actors can solve the problem of externalities among themselves, without government intervention, regardless of whether those actors incur significant costs in reaching and enforcing an agreement
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Consider an economy that has the following monetary data. The monetary base and the money supply are expected to grow at a constant rate of 20% per year. Inflation and expected inflation are 20% per year
Suppose that bank reserves and currency pay no interest, all currency is held by the public, and bank deposits pay no interest. What is the cost to the public of the inflation tax? A) $60 B) $140 C) $190 D) $200
The period from 1977 through 1989 saw a wave of corporate mergers in the U.S. These mergers were characterized by
a. the use of junk bonds for financing buyouts. b. the low debt-to-equity ratios of the resulting firms. c. resulting firms that focused on "core competencies" rather than diversification. d. a "buyers' market" in which acquiring firms could purchase the stock of takeover targets for less than market value. e. All of the above.
Rapid population growth leads to age dependency which refers to:
a. a reduction in the amount of capital per worker, which lowers the productivity of labor. b. shifts in government expenditures from the country's infrastructure to education and health care. c. a large number of dependent children whose consumption requirements lower the ability of the economy to save. d. high mortality rates of middle-aged workers that reduces the average amount of investment spending. e. survival of the elderly who are dependent on government welfare support.
Given the price of a good or service, what determines how much a person is willing to pay for that good or service?
A. total utility B. marginal utility C. average utility D. the substitution effect