________ states that under certain conditions, private parties can arrive at an efficient solution without government involvement.
A. The free-rider hypothesis
B. The impossibility theorem
C. The Tiebout hypothesis
D. The Coase theorem
Answer: D
You might also like to view...
If excess reserves are $30,000, demand deposits are $100,000, and the required reserve ratio is 15 percent, then total reserves are
A. $45,000. B. $15,000. C. $130,000. D. $30,000.
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question,
After trade, at a world price of Pw, the net gain of consumer surplus equals area(s)
A. B + C. B. D. C. B + C + E + F. D. E + F.
Refer to the diagram. Constant returns to scale:
A. occur over the 0Q 1 range of output.
B. occur over the Q 1 Q 3 range of output.
C. begin at output Q 3 .
D. are in evidence at all output levels.
In Figure 22.2, which area represents consumer surplus to the smoker? 
A. 0ACQ* B. 0P*CQ* C. 0BCQ* D. AP*C