"According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an agreement with the station if the property right to the airspace is
clearly defined and the transaction costs of negotiating are high." Is this statement true or false? Explain your answer.
The statement is false. The first part of the statement is correct, insofar as the property right to the airspace needs to be clearly defined. However, the second part is incorrect. In particular, if the costs of negotiating are high, Gabriel and the television station are less likely to be able to come to an agreement.
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Fixed investment includes spending on all of the following goods except: a. machinery
b. inventory. c. tools. d. factory buildings.
International specialization allows a country to use its resources to
a. create jobs for government workers by expanding international foreign aid programs b. produce special goods such as computer software that require specific knowledge c. expand the development of its natural resources such as lumber, oil deposits, and coal d. produce specific goods, allowing other countries to focus on the production of other goods e. develop political ties through international cooperation and mutual sharing of goods
When demand changes, there is a ____, whereas when the price changes, there is a ____. Question 14 options:
A. change in the quantity demanded; change in demand B. shift in the demand curve; movement along the demand curve C. movement in the quantity demanded; shift in buying plans D. movement along the demand curve; shift in the demand curve
Economists typically suggest three choices that allow a polluter to decide how to absorb most, or perhaps all, of the social costs of its actions, which are
A. reducing the pollution-causing activity, changing production techniques, or paying a price to pollute. B. paying a pollution tax, continuing to use existing production techniques, or continuing the polluting behavior without regard to the social implications. C. continuing to overproduce the good, lowering the price of the good, or cutting output. D. installing pollution abatement equipment, paying to pollute, or just ignoring the issue.