List and discuss three problems that might arise when using the Coase theorem.
What will be an ideal response?
Bargaining costs are generally not zero. Identifying damages is difficult. There is generally
some amount of asymmetric information.
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Everything else held constant, increased demand for a country's exports causes its currency to ________ in the long run, while increased demand for imports causes its currency to ________
A) appreciate; appreciate B) appreciate; depreciate C) depreciate; appreciate D) depreciate; depreciate
The marginal revenue product of land curve indicates
a. the additional output generated by an additional unit of land, other things constant b. the additional cost to the firm when it employs an additional unit of land, other things constant c. the additional profit the firm earns when it employs an additional unit of land, other things constant d. the additional revenue the firm earns when it employs an additional unit of land, other things constant e. the amount of land required to produce an additional unit of output, other things constant
Which of the following characterizes the classical view of the economy?
a. The economy is inherently unstable. b. Prices and wages are not flexible. c. The economy will "self-adjust" to full employment. d. None of these.
The exchange rate states the price, in terms of one currency, at which another currency can be bought
a. True b. False Indicate whether the statement is true or false