The Coase Theorem implies that _____
a. absent transactions costs, resources will be efficiently allocated
b. absent transactions costs, resources will be inefficiently allocated
c. with significant transactions costs, resources will be efficiently allocated
d. with significant transactions costs, resources will be inefficiently allocated
a
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John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina receives a marginal benefit of $65 from one missile. John, Nick, and Christina are the only people in the economy
What is the economy's marginal social benefit from one missile? A) $50 B) $65 C) $80 D) $195
When externalities are present, market prices do not reflect all the social costs or benefits of the activity
a. True b. False
There is no easy way for policymakers to reduce the economy's natural rate of unemployment while at the same time reducing the hardships of the unemployed
a. True b. False Indicate whether the statement is true or false
The price tag on a golf ball in 1975 read $0.20, and the price tag on a golf ball in 2005 read $2.00 . The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3 . In 1975 dollars, a 1975 golf ball cost $0.20 and a 2005 golf ball cost
a. $0.55, so golf balls were cheaper in 1975. b. $0.55, so golf balls were cheaper in 2005. c. $7.32, so golf balls were cheaper in 1975. d. $7.32, so golf balls were cheaper in 2005.