The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, is called
a. the Pigovian theorem.
b. a corrective tax.
c. the externality theorem.
d. the Coase theorem.
d
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Exhibit 36-4 ? Stock High Low Close Net chg. Brown, Inc. 55.75 33.65 42.10 (A) Greenco 78.50 45.75 (B) -0.75 Black Motors 81.50 65.90 76.00 (C) ? ? Refer to Exhibit 36-4. If the closing price of Brown, Inc.'s stock on the previous day was $43.10, what value goes in blank (A)?
A. -1.00 B. +1.00 C. -0.50 D. +0.50 E. There is not enough information given to answer this question.
The higher the reserve requirement,
a. the more the money supply can expand. b. the more interest the bank will earn on its reserve account. c. the less the money supply can expand. d. both the more the money supply can expand and the more interest the bank will earn on its reserve account.
If there is currently a recessionary gap: a. The price level will tend to rise. b. Real output will tend to rise
c. Both a. and b. will occur. d. None of the above will occur.
The school of thought that assumes that real GDP is determined by aggregate supply, whereas the equilibrium price level is determined by aggregate demand is known as _____
a. neoclassical economics b. classical economics c. new Keynesian economics d. Keynesian economics e. Marxist economics