According to the Coase theorem, transaction costs have to be ______.
a. taxed
b. subsidized
c. low
d. high
c. low
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Asymmetric information generally leads to efficient resource allocation.
Answer the following statement true (T) or false (F)
In a diagram of aggregate demand and supply curves, the GDP gap is measured as the
A. Vertical distance between the equilibrium output and the full-employment output. B. Horizontal distance between the equilibrium output and the full-employment output. C. Horizontal distance between the aggregate demand necessary to achieve full employment and the aggregate demand curve at equilibrium output. D. Vertical distance between the equilibrium price and the price at which the aggregate demand would intersect aggregate supply at full employment.
Which of the following is included in measuring GDP?
A. the transfer of secondhand goods B. the value added at each stage of production of a final product C. the buying and selling of securities D. household services rendered by homemakers
The ability of an individual, firm, or country to produce a certain good at a lower opportunity cost than other producers is referred to as:
A) marginal advantage. B) absolute advantage. C) cardinal advantage. D) comparative advantage.