According to the Coase theorem, if the initial distribution of rights favors some party, market efficiency will ensure that the net benefits to that party are maximized
Indicate whether the statement is true or false
F
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Many people are offended when they learn that the CEO of a charitable organization makes a salary commensurate with a CEO of a private company that is run for profit
Explain why it would be a mistake for charitable organizations to pay their CEOs less than companies that are driven by profit?
For a given technology and a given labor force, labor productivity will be ____ when the capital stock is ____
a. higher; larger b. lower; larger c. lower; unchanged. d. higher; smaller
Assume that the Fed lowers the required reserve ratio. How will this affect the money supply?
a. It would decrease. b. It would increase. c. It would remain unchanged. d. It depends on the value of interest rates.
Last year, Tess bought 5 handbags when her income was $54,000 . This year, her income is $60,000 . and she purchased 7 handbags. Holding other factors constant, it follows that Tess's income elasticity of demand is about
a. 0.32, and Tess regards handbags as inferior goods. b. 0.32, and Tess regards handbags as normal goods. c. 3.17, and Tess regards handbags as inferior goods. d. 3.17, and Tess regards handbags as normal goods.