The assumptions needed for the Coase theorem to work:
A. are often observed in the real world.
B. always hold true in the real world.
C. often do not hold true in the real world.
D. never hold true in the real world.
Answer: C
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The production function 
can have increasing returns to scale or decreasing returns to scale -- but it cannot have initially increasing and eventually decreasing returns to scale.
Answer the following statement true (T) or false (F)
One typical cause of poverty is a lack of
a. money b. faith in the market system c. human capital d. desire to work e. all of the above
The OPEC oil shocks in 1973-1974 are an example of:
A) favorable supply shock, shifting the short-run aggregate supply curve rightward. B) favorable supply shock, shifting the short-run aggregate supply curve leftward. C) adverse supply shock, shifting the short-run aggregate supply curve rightward. D) adverse supply shock, shifting the short-run aggregate supply curve leftward.
A network effect exists whenever
A) a firm's willingness to produce a particular good or service is influenced by the costs of inputs it must utilize in order to manufacture the item. B) a consumer?s willingness to purchase a particular good or service is influenced by how many others also buy or have bought the item. C) a firm's willingness to purchase a particular factor of production depends on the other types of inputs it utilizes to manufacture an item. D) a consumer's willingness to purchase a particular good or service is influenced by the prices of other complementary or substitute items.