The Coase Theorem implies that when there are no costs to trading, _____
a. resources will move to their most valued uses, depending upon who gets the initial property rights
b. resources will move to their most valued uses, regardless of who gets the initial property rights
c. resources might be misallocated, depending upon the who gets the initial property rights
d. resources might be misallocated, regardless of who gets the initial property rights
b
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What is the name of the 1994 U.S. Housing and Urban Development program which randomly assigned families who applied into three groups and gave families the chance to leave their old neighborhoods?
A) the Neighborhood Gentrification Program B) Choose It or Lose It C) the Housing Choice Voucher Program D) Moving to Opportunity
If the economy is on the LM curve, but is to the left of the IS curve, aggregate output will ________ and the interest rate will ________
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
All else equal, it is more likely for a case to be settled the ________ the plaintiff's assessment of the expected (received) payment and the ________ the total cost of litigation.
A) smaller; smaller B) larger; smaller C) larger; larger D) smaller; larger
Which of the following is a characteristic of a real option?
a. The call option on a stock exercised if some average of the prices of its components passes a critical level. b. The right to postpone construction on the basis of net present value calculation. c. The put option on a stock that need to be paid for (at a predetermined price) if they are actually exercised. d. The right to sell an option at the strike price.