The Coase Theorem states that externalities can always be eliminated by the market as long as property rights exist, the number of parties involved is small, and transactions costs are low
Indicate whether the statement is true or false
TRUE
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Higher real GDP growth usually causes
A) a drop in net exports. B) a rise in net exports. C) a drop in the trade deficit. D) A and C.
After a price ceiling of $8 is placed on the market in the graph shown, which area represents consumer surplus?
A. A + C
B. A + B
C. A + B + C
D. A + B + C + D + F + G
Straight line pay for performance
a. Eliminates the managers' incentives to lie about the budget b. Eliminates the perverse incentive to hide information c. Does not link compensation to meeting a budget target d. All of the above
For the "Composite Commodity Theorem" to hold, all goods in the composite must:
a. have constant prices. b. have constant relative prices. c. be used in fixed proportions. d. be net complements.