When property rights are assigned and transactions costs are low
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient.
B) externalities will lead to market failure.
C) the marginal social benefit curve shifts leftward.
D) the marginal social cost curve shifts rightward.
A
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Of the five game types described in this chapter (prisoner's dilemma, pure coordination, assurance, battle of the sexes, chicken), which have a dominant strategy and which have more than one Nash equilibrium in a two-player game?
What will be an ideal response?
Costa Rica is a leading exporter of bananas. What explains the comparative advantage of this country in banana production?
A) investment by multinational firms such as Chiquita Brands International and the Dole Food Company B) climate and soil conditions in Costa Rica which are well-suited for banana production C) positive externalities D) a large supply of unskilled labor
Why is real GDP per capita a more accurate measure of economic well-being than real GDP?
a. Real GDP per capita uses more current numbers than real GDP. b. Real GDP per capita uses less complex numbers than real GDP. c. Real GDP per capita takes into account population changes, but real GDP does not. d. Real GDP per capita takes into account ethnic differences, but real GDP does not.
Most financial markets in the United States operate under a system:
A. where it depends on which state where the financial market is located since some states do not have any regulations. B. without any formal rules or regulation. C. with many rules and regulation to ensure a fair market. D. that is totally controlled by the federal government.