Coase made famous a court case between a doctor and a confectioner. Suppose that exact case happened again and transactions costs were absent. When would we be sure that resources were inefficiently allocated?
a. If the confectioner wins the property right to make his confections.
b. If the doctor wins the right to prevent the confectioner from making his confections.
c. Zoning laws are changed to prevent the confectioner from manufacturing in the current location.
d. The judge forces the parties to bargain until they reach an agreement on who has a right to do what.
c
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In the U.S., banks
A) cannot be forced to sell assets that the bank examiner deems too risky. B) can be forced to sell assets that the bank examiner deems too risky. C) can be forced to sell assets that the bank examiner deems too risky only after a court order. D) can be forced to sell assets that the bank examiner deems too risky only after both examiners from the Fed and from the FDIC agree. E) can be forced to trade assets that the bank examiner deems too risky.
Aggregate supply can usually be increased as workers
A. work smarter, better and more efficiently when provided with better, education, tools, and technology. B. work smarter, better, and more efficiently. C. work harder. D. are provided with better education, tools, and technology.
If the economy of Gwondanaland is growing more rapidly than the economy of Japan, most likely
A. Japan has more current investment than Gwondanaland. B. Japan has more government spending than Gwondanaland. C. Japan spends more on capital goods than Gwondanaland. D. Gwondanaland has lower current consumption than Japan. E. Gwondanaland has lower current investment than Japan.
Which entry strategy involves the least commitment with foreign firms?
A) establishing a partnership with a foreign agent or distributor B) a merger with foreign firm C) a joint venture with foreign firm D) master franchising