Which of the following must be in place for the Coase theorem to work?
a. A pollution charge placed on specific amounts of pollution
b. A marketable permit program
c. Strongly defined private property rights
d. Specific types of technology used
c. Strongly defined private property rights
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In the foreign exchange market, the demand for dollars decreases and the demand curve shifts leftward if the
A) U.S. interest rate differential increases. B) U.S. exchange rate falls. C) U.S. interest rate differential decreases. D) U.S. exchange rate rises. E) expected future exchange rate rises.
Which of the following is NOT an example of transactions costs?
A) high interest rates B) lawyers' fees C) brokerage commissions D) minimum investment requirements
If two accountants have had the same education, amount of experience, and work at the same type of job for the same profit-maximizing firm, which charges its clients a uniform hourly fee,
a. they should earn the same amount of money b. the one whose job is riskier should be paid more c. the one whose job is riskier should be paid less d. the one who has a higher marginal product (due to ability) should be paid more e. the one who has a higher marginal product (due to ability) should be paid less
To stimulate the economy, the government is likely to
A. increase spending. B. restrict trade. C. raise prices. D. decrease expenses