Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same
Also, suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. In this case, the Coase theorem predicts that A) Dudley will pay Angus to not play the bagpipes.
B) Angus will pay Dudley so Angus can play the bagpipes.
C) Dudley will do nothing and Angus will mop floors.
D) no bargain can be reached between Angus and Dudley.
D
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If the interest rate at which you can lend funds is r percent per year, then the present value of Y dollars to be received next year is
a. (1 + r)Y b. Y / r c. Y d. Y - r e. Y / (1 + r)
Exchange controls in Peru _________
a. reduce quotas b. are illegal c. reduce tariffs d. are designed to float the exchange rate e. will ease the pressure on Peru's foreign exchange reserves if its exchange rate is fixed
In a market economy, the decisions about what to produce and how much of each good or service to produce are made by
A. government officials. B. economic planners. C. central bankers. D. consumers and producers.
Voluntary exchange is a change that makes
A. some people better off and nobody worse off. B. nobody better off and nobody worse off. C. everyone better off and nobody worse off. D. some people better off and some people worse off.