The Coase theorem argues that the assignment of property rights will generate an efficient solution to the problem of
a. positive externalities as long as bargaining costs are small
b. negative externalities as long as bargaining costs are small
c. negative externalities as long as bargaining costs are great
d. any type of market failure
e. any type of market failure that involves high transaction costs
B
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Which of the following Latin American countries had by far the worst growth rate between 1960 and 2011?
A) Brazil B) Columbia C) Mexico D) Venezuela
To support the argument for an active role for government in stabilizing the economy, it must be true that
A) consumers are not rational and that not all wages and prices are flexible. B) not all wages and prices are flexible and that government must be able to react quickly enough. C) government must be able to react quickly enough and that shocks to the economy be primarily due to aggregate supply shocks. D) shocks to the economy be primarily due to aggregate supply shocks and that consumers are not rational.
The reserve ratio is the ratio of: a. Federal Reserve member banks to nonmember banks. b. Federal Reserve nonmember banks to member banks. c. Federal Reserve member banks to all U.S. banks
d. a bank's total deposits to its reserves. e. a bank's reserves to its total deposits.
Utility is:
a. the cost associated with an additional unit of product. b. the satisfaction obtained from a good or service provided. c. the value that a third party places on a good or service. d. the price that a seller places on a good or service being provided.