The Coase Theorem implies that the reason people sue each other in court is that transactions costs are too high.
Answer the following statement true (T) or false (F)
False
Rationale: The reason might also be that property rights are not well established.
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When the Chinese government buys U.S. government bonds, from the perspective of the United States, this is a(n):
A. capital inflow. B. export. C. import. D. capital outflow.
In purchasing diamonds and water, a consumer would maximize utility by
a. dividing expenditure equally between those two goods b. equating the marginal utilities from each of those two goods c. equating average utility per diamond with average utility per unit of water d. equating the total utility per diamond with the total utility per unit of water e. equating marginal utility per dollar spent on each of those two goods
A special interest issue is one that:
a. provides large private benefits and large social benefits
b. provides small private benefits and large social benefits.
c. provides large benefits to each of a small number of people and small costs to each of a large number of people.
d. provides small benefits to each of a small number of people and large costs to each of a large number of people.
Which of the following scenarios is an example of an investment in physical capital?
A. A chemical firm employs chemists to develop new chemicals. B. A firm pays for workers to take college classes. C. A firm purchases new equipment for a manufacturing process. D. A firm trains workers to operate new machinery.