Which one of the following is not a possible limitation of using the Coase theorem to guide environmental policy?
a. The free rider effect
b. Poor communities are likely to bear a high proportion of environmental costs
c. Voluntary transactions cannot protect the environment
d. Transactions costs are likely to be high when many parties are involved
Answer: c. Voluntary transactions cannot protect the environment
You might also like to view...
When marginal product is less than average product,
a. average product falls. b. average product is zero. c. average product increases. d. average product is unaffected.
Even if some people are hurt by international trade, the HO model predicts that free international trade improves the standard of living for the country as a whole
Indicate whether the statement is true or false
Studying the growth of (Y/N) in the United States over the period 1909-1957, Robert Solow found that growth in multifactor productivity accounted for ________ of it
A) ten percent B) twenty-five percent C) one-third D) roughly half E) seven-eighths
According to the quantity theory of money, an excess quantity of money supplied will lead to
A) a reduction in spending and higher interest rates. B) a reduced level of real Gross Domestic Product (GDP). C) a higher level of employment. D) a higher price level.