Are all externalities negative? Explain
What will be an ideal response?
No, all externalities are not negative. Some activities bestow a benefit upon individuals not involved in the activity. These would be positive externalities.
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Explain the Coase theorem. In order for the Coase theorem to be applicable, explain which three conditions must be satisfied. Give an example to show how the Coase theorem can be applied
What will be an ideal response?
African countries contain a third of the world's population and over half of the world's extreme poverty
Indicate whether the statement is true or false
If people in the United States buy more of a foreign good when its price falls, then
A) the demand curve for U.S. dollars will slope up. B) the supply curve for U.S. dollars will slope up. C) the exchange rate will increase when there is inflation. D) fixed exchange rates will make foreign exchange markets more efficient.
The federal agency that regulates the New York Stock Exchange is the
a. Securities and Exchange Commission b. Department of Justice c. Department of Commerce d. Federal Reserve Board e. Department of the Treasury