The Coase Theorem suggests that negotiations to eliminate an externality allow the resource to
A. stop causing the externality altogether.
B. move to the person who values it the most.
C. move to the person who needs it the most.
D. continue to benefit everyone.
Answer: B
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The fundamental force that drives trade between nations is
A) the government. B) NAFTA. C) absolute advantage. D) comparative advantage. E) legal treaties.
A Roth IRA differs from a traditional IRA in that
A. the Roth IRA allows for savings towards retirement. B. the Roth IRA is phased out at certain income levels. C. the Roth IRA is not tax deductible at the time it is deposited. D. all of these answer options are correct.
If a perfectly competitive firm adopts a new technology, greater economic profit is possible in the ________, but a competitive return will be earned in the ________ as the market supply will ________.
A) long run; short run; decrease B) short run; long run; increase C) short run; long run; decrease D) long run; short run; increase
The largest share of federal government tax receipts is derived from
A) corporate income taxes. B) excise taxes. C) social insurance contributions. D) individual income taxes.