Keynesians
A. believe capitalism is inherently unstable.
B. contend that government intervention in the economy is undesirable.
C. advocated a laissez-faire policy.
D. believe wages and prices are flexible downward.
A. believe capitalism is inherently unstable.
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The Tiebout model offers a quasi-market solution to public good production and community development. What are some drawbacks to this model?
What will be an ideal response?
According to the Coase theorem, in order to solve a negative externality problem efficiently,
a. the property right must be assigned to the party with the least-cost alternative b. the property right must be assigned to the victim of pollution c. transaction costs must be high d. transaction costs must be low e. property rights must be determined by the courts
Market failure occurs when
a. all Pareto improvements are undertaken b. refusal to make a side payment reduces Pareto efficiency c. the economy operates above the production possibilities frontier d. markets are perfectly competitive e. some Pareto improvements are not made
Private property was argued to be inappropriate by Marxists due to its distribution from those "who have" to those "who will have" in a fashion creating a class to itself
Indicate whether the statement is true or false