According to Coase, the efficient solution to an externality problem depends on which party can avoid the problem at the lower cost. Thus when property rights are assigned to one party or another, the two parties will agree on the efficient solution to an externality problem as long as transaction costs are low, regardless of which party is assigned the property right
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true
Economics
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If production involves constant opportunity cost, the production possibilities frontier
A. is “bowed inward.” B. is a straight line. C. is “bowed outward.” D. is a wavy line. E. has an unpredictable shape.
Economics
________ countries tend to depend on tariffs for a relatively large part of their government revenue
A) Developed B) Developing C) All
Economics
The correlation between an asset's real rate of return and its risk (as measured by its standard deviation) is usually
A) positive. B) strictly linear. C) flat. D) negative. E) chaotic.
Economics
Recent reforms in the U.S. welfare system have been aimed at reducing long-term dependency on welfare
Indicate whether the statement is true or false
Economics