In which of the following situations would the Coase theorem more likely to be applied?
A) Two neighbors: a farmer and a beekeeper.
B) Highway drivers and the dwellers of neighborhoods crossed by the highway.
C) A railroad and its adjacent land owners.
D) None of the above.
A
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If California were a separate nation, its economy would rank where among nations of the world?
A. Second B. Third C. Fifth D. Sixth
Monetarists differ from traditional classical theorists in their belief that
a. velocity is not constant b. the only motive for demanding money is the transactions demand c. investment is very sensitive to changes in the interest rate d. the economy operates at full-employment e. increases in the money supply do not lead to changes in real GDP
When total expenditure (TE) exceeds total production (TP), inventory levels rise unexpectedly, which sends a signal to firms that they have overproduced, so they cut back on production
Indicate whether the statement is true or false
Which does the government not control directly?
a) Spending on health b) Spending on defence c) Firms' investment decisions d) Spending on state education