The Coase theorem states that if pollution permits are tradable, the outcome will be optimal, _____
a. regardless of who initially gets the permits
b. only if the property rights are assigned to the victims of pollution
c. only if property rights are determined by the government
d. only if the property rights are assigned to the party with the least-cost alternative
a
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A price floor is
A) the highest possible legal price that can be charged for a good or service. B) usually equal to the equilibrium price established before the government imposed the price floor. C) the lowest legal price at which a good or service can be traded. D) a legal price of zero that can be charged for a good or service. E) almost always equal to the price ceiling.
The judicial doctrine, being a monopoly or attempting to monopolize is not in itself illegal; to be illegal, an action had to be shown to have negative economic effects, is called:
a. the "big is bad" policy. b. the per se rule. c. predatory price-cutting policy. d. the rule of law. e. the rule of reason.
The argument of Keynesian macroeconomic policy is that ______________ need(s) to spend when times are hard and save when times are good for the sake of the overall economy.
a. individuals b. the government c. states d. companies
Which of the following is determined by dividing the firm's total costs by the quantity of its output?
a. Implicit cost b. Fixed cost c. Variable cost d. Average cost