The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low
A) external costs result in deadweight losses.
B) external benefits result in deadweight losses.
C) private transactions are efficient.
D) public transactions are efficient.
C
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If scarcity was not a fact, a. people could have all they wanted of goods and services for free
b. it would no longer be necessary to make choices. c. poverty, defined as the lack of a minimum level of consumption would also be eliminated. d. all of the above would be true.
Which of the following Fed actions would both decrease the money supply?
a. buy bonds and raise the reserve requirement b. buy bonds and lower the reserve requirement c. sell bonds and raise the reserve requirement d. sell bonds and lower the reserve requirement
Total variable cost ________ as output increases, and total fixed cost ________ as output increases.
A. increases; decreases B. increases; increases C. does not change; does not change D. increases; does not change
Total utility can be positive even when marginal utility is negative.
Answer the following statement true (T) or false (F)