Which of the following suggests that private markets can be effective in dealing with externalities?
a. the "invisible hand"
b. the law of diminishing social returns
c. the Coase theorem
d. technology policy
c
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Often politicians assert that a price, such as the price of gasoline or the rent for an apartment, is too high and that it is unfair for these prices to be so high
If these products are traded in competitive markets, what fairness rule are politicians using? Why?
If workers and firms have rational expectations, they form their expectations using
A) only information provided to them by the government. B) only information from the past. C) only information gathered from random sources. D) all the information available to them.
If Americans decide to buy more South African diamonds, what is the effect in the exchange market? a. It will increase the supply of U.S. dollars
b. It will decrease the supply of U.S. dollars. c. It will increase the demand for U.S. dollars. d. It will decrease the demand for U.S. dollars.
Marcus sells 300 candy bars at $0.50 each. His total costs are $125 . His profits are
a. $25. b. $124.50. c. $125. d. $150.