The Coase theorem asserts that, in the presence of externalities,
a. private economic actors sometimes can reach a bargain that produces an efficient outcome.
b. private economic actors always can reach a bargain that makes everyone better off.
c. private solutions cannot be very effective.
d. corrective taxes cannot be very effective.
a
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Bureaucratic capture is:
A. a specific avenue through which corruption and rent-seeking can occur. B. when government positions are filled with people who have close ties to the group they are supposed to regulate. C. a source of bias or personal sympathy that interferes with efficiency. D. All of these are true.
An example of a cooperative game would be
A) oligopoly. B) monopolistic competition. C) a cartel. D) perfect competition.
On a graph, consumer surplus is the area above the equilibrium price and below the demand curve.
Answer the following statement true (T) or false (F)
All of the following are typically considered procyclical variables except
A) the inflation rate. B) investment expenditures. C) the unemployment rate. D) expenditures on durable goods.