The Coase theorem says that which of the following is necessary to lead to an efficient use of resources?
A) presence of transaction costs
B) existence of property rights
C) government intervention
D) All of the above answers are correct.
B
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) If business income is total output minus total labor cost, then business income in country A after the immigration occurs is equal to area:
A. haf
B. habg
C. hcg
D. hce0
Gasoline and heating oil are examples of products which are
A) joint products in fixed proportions. B) joint products in variable proportions. C) joint products that are complements. D) unrelated to each other.
Interest rates are higher the
A) shorter the duration of the loan. B) greater the risk. C) larger the amount of the loan, holding other things constant. D) lower the inflation rate.
When interest rates in the U.S. increase, we could expect:
A. more foreigners investing in U.S. assets. B. less foreigners investing in U.S. assets. C. more U.S. citizens investing abroad. D. less U.S. citizens investing in U.S. assets.