Why does the absence of well-defined property rights serve as a stumbling block for the application of the Coase theorem?
What will be an ideal response?
Well-defined property rights are necessary in order for the possibility of
Bargaining between parties. If property rights are not well-defined there really
would be no point in bargaining.
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The effects of an increase in real money demand on an economy
A) is an argument against flexible exchange rates. B) is an argument in favor of flexible exchange rates. C) shows the difficulties in determining which exchange rate regime is better. D) is an argument in favor of flexible exchange rates only in the short run. E) is an argument against flexible exchange rates only in the short run.
For a given price level, which of the following correctly indicates how to find the quantity of real GDP demanded?
a. Where the consumption function crosses the savings curve b. Where the demand for investment curve crosses the labor supply curve c. Where real GDP equals aggregate expenditure d. Where the labor supply curve crosses the consumption function
The Fed is one of the largest departments within the U.S. Treasury
Indicate whether the statement is true or false
Which of the following examples involves variable costs
a. Last year, Gerard Industries paid $2 million for raw materials. b. Gerard Industries pays $100,000 a year for rent. c. Gerard Industry just made an annual insurance payment of $50,000. d. The property tax rate for Gerard Industries remains at 2 percent.