Consider the following characteristics:
a. low transactions costs
b. small levels of pollution
c. high levels of pollution
d. clear assignment of property rights
Which of the above are assumptions behind the Coase Theorem?
A) a, b, and d B) a, c, and d C) a and d D) a only
C
You might also like to view...
Lance's boss offers him twice his usual wage rate to work tonight instead of taking his girlfriend on a romantic date. This offer will likely: a. not affect the opportunity cost of going on the date
b. reduce the opportunity cost of going on the date because giving up the additional work dollars will make his girlfriend feel even more appreciated. c. increase the opportunity cost of going on the date. d. reduce the opportunity cost of working.
As the Asian financial crisis of 1997 began to spread, it became obvious to investors that Korean investments would provide lower returns than expected. What was the impact of such a realization on the foreign exchange market?
a. The supply of Korean won decreased as people tried to withdraw their Korean investments. b. The price of dollar in terms of Korean currency decreased as people invested more in U.S. assets. c. The demand for dollars decreased as investors realized that there is a worldwide crisis going on. d. The demand for dollars increased as investors put their money in U.S. and other foreign assets. e. The demand for Korean won increased as investors decided to invest in Korean assets.
When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.
The price of a Big Mac in the U.S. is $4.93; the price in France is 3.72 euros. The current exchange rate is 1.07€/$. What is the real exchange rate?
What will be an ideal response?