Coase bargaining works best in a situation with a large number of affected parties and the transactions costs of bargaining are relatively low.
Answer the following statement true (T) or false (F)
False
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To economists, scarcity means that
A) the number of people without jobs rises when economic times are bad. B) unlimited wants cannot be satisfied by the limited resources. C) limited wants cannot be satisfied by the unlimited resources. D) there can never be answers to the what, how or for whom questions. E) a person looking for work is not able to find work.
In trying to control the size of the money stock from day to day, the Fed relies principally on
A) adjustments in legal reserve requirements. B) changes in the central bank discount rate. C) purchases and sales of U.S. government bonds. D) the issue and withdrawal of currency from commercial banks.
The owners of Market Analysts, a business and economics consulting firm, are big believers in paying benchmark competitive wages. They pay all (nonlegally specified) compensation in wages. If an employee wants a benefit, the company has an insurance program, but it comes out of the employee's paycheck. Market Analysts tends to hire very young workers just out of college. They are energetic and work hard, but after two years they tend to leave for other firms, taking valuable training with them. If Market Analysts wants to keep its employees, what changes should it make to the terms of employment offered to new employees?
What will be an ideal response?
Engineers for The All-Terrain Bike Company have determined that a 15% increase in all inputs will cause a 15% increase in output. Assuming that input prices remain constant, you correctly deduce that such a change will cause ________ as output increases.
A. average costs to remain constant B. average costs to increase C. average costs to decrease D. marginal costs to increase