The main reason barter is extremely inefficient is that:
A. you have to find someone who both has what you want and wants what you have.
B. it can have very high transactions costs associated with it.
C. people and firms have to spend a lot of time looking for mutually agreeable trades.
D. All of these are true.
D. All of these are true.
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Which of the following situation would make transaction costs too high to negotiate and therefore the Coase Theorem would not apply?
A. Many people are bothered by pollution in the area B. Many firms are working together to eliminate pollution C. Only a few people are bothered by the pollution in the area D. One firm is the cause of the pollution
If there exists a shortage in the market for snowmobiles, then the price of a snowmobile will
A) rise. B) fall. C) neither rise nor fall. D) at first fall then rise.
Which of the following schools of thought stressed on a fixed-price model for macroeconomic equilibrium?
a. Traditional Keynesians b. New Keynesians c. Monetarists d. Classical economists e. New classical economists
The figure above illustrates the bagel market. Which of the following statements is correct?
A) With a price ceiling of $1.00 per bagel, the price of a bagel is $1. B) With a price ceiling of $3.00 per bagel, the price of a bagel is $2. C) With no government intervention, the equilibrium price of a bagel is $2. D) Only answers A and B are correct. E) Answers A, B, and C are correct.