The Coase theorem is the idea that:
A. individuals can reach an efficient equilibrium through private trades, even in the presence of an externality.
B. there are always mutually beneficial trades waiting to be exploited, and that creates a clear role for government taxation.
C. the actions of private individuals and firms are insufficient to ensure efficient markets.
D. None of these statements is true.
A. individuals can reach an efficient equilibrium through private trades, even in the presence of an externality.
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Consumption expenditure is the payment by households for consumption of
A) goods but not services. B) services but not goods. C) goods and services. D) services and for saving.
Refer to Scenario 14.3. What is the marginal profit from hiring the third unit of labor?
A) 30 B) 65 C) 85 D) 225 E) none of the above
The limited savings of the poor is evidence of the flawed character of the poor
Indicate whether the statement is true or false
An economy that is an active participant in international trade is
A) an egalitarian economy. B) a closed economy. C) an economy whose currency value fluctuates widely. D) an open economy.