According to the Coase theorem, efficient solution of an externality problem:
a. can be achieved when any one of the parties to a transaction is assigned a property right.
b. can be achieved when transaction costs borne by parties to a transaction are high.
c. can be achieved only if one particular party is assigned the property right.
d. can be achieved only if both the parties to a transaction are assigned the property rights.
a
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Refer to Figure 15-7. Suppose the economy is in short-run equilibrium above potential GDP, the unemployment rate is very low, and wages and prices are rising
Using the static AD-AS model in the figure above, the correct Fed policy for this situation would be depicted as a movement from A) A to E. B) B to C. C) C to D. D) C to B. E) A to B.
Corporate income taxes are based on the amount of revenue a corporation earns
a. True b. False Indicate whether the statement is true or false
Suppose only 7 percent of Turkey's products go to the United States. Hence, an increase in U.S. imports from Turkey:
a. would have no significant effect on Turkey's domestic income.
b. would significantly increase Turkey's domestic income.
c. would significantly decrease Turkey's domestic income.
d. would significantly increase U.S. domestic income.
e. would significantly decrease U.S. domestic income.
Which of the following examples would most likely happen with monopolistic competition?
a. When an ice cream shop introduces coffee ice cream, a nearby ice cream shop remains unaware of this. b. When a bowling alley offers $1,000 for a perfect game, another bowling alley offers $2,000 for a perfect game. c. When a coffee shop introduces pumpkin lattes, another coffee shop introduces cranberry lattes. d. When a restaurant offers free coffee refills, a nearby restaurant does the same.