If MUx/Px > MUy/Py, then
A. X is more expensive than Y.
B. spending a dollar less on Y and a dollar more on X increases utility.
C. spending a dollar less on X and a dollar more on Y increases utility.
D. Y is more expensive than X.
Answer: B
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What will be an ideal response?
The Coase theorem says that which of the following is necessary to lead to an efficient use of resources?
A) presence of transaction costs B) existence of property rights C) government intervention D) All of the above answers are correct.
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Fogel and Engerman (1974) are generally of the opinion that American slavery
(a) was antiquated, inefficient and was on the verge of existance. (b) was thriving and profitable in the decades prior to the Civil War. (c) provided conditions for a reasonably normal family life and standard of living for the slaves with very little breakup of slave families or exploitation of slaves. (d) was inferior to the wage-labor system in the South and would have likely been replaced with time.