The Coase Theorem suggests that under its assumption, the efficient solution to an externality problem:
a. depends on who owns property rights to the resources
b. is enhanced by government involvement in the negotiations.
c. can be enhanced through the use of taxes.
d. does not depend on the distribution of property rights.
d
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A recession is a decline in
A. the inflation rate that lasts six months or longer. B. real GDP that lasts six months or longer. C. the unemployment rate that lasts six months or longer. D. potential GDP that lasts six months or longer.
On the Fed's balance sheet, assets include
A) reserves of depository institutions and mortgage-backed securities. B) U.S. government securities and mortgage-backed securities. C) currency and reserves of depository institutions. D) currency and mortgage-backed securities.
The Laffer curve depicts a basic idea of which of the following schools?
a. supply-side economics b. rational expectations c. Keynesian d. neo-Keynesian e. classical
A perfectly competitive firm will earn positive economic profits in the range of output for which the firm’s price is _________ its minimum average total cost.
A) below B) above C) equal to D) below its marginal cost and