The Coase theorem applies to cases where _____

a. transactions costs are high
b. transactions costs are obvious
c. transactions costs are zero
d. transactions costs are difficult to figure out


c

Economics

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Figure 9.1 shows three aggregate demand curves. A movement from point b to point c could be caused by a(n)

A) decrease in government spending. B) decrease in the price level. C) decrease in taxes. D) increase in the money supply.

Economics

In the short run,

a. spending determines income, but not the other way around b. income determines spending, but not the other way around c. spending determines the interest rate, but not the other way around d. spending determines income, and income determines spending e. spending determines the productivity, and productivity determines spending.

Economics

Pollution imposes costs on people and firms other than those involved in producing or consuming the product that produces pollution.

Answer the following statement true (T) or false (F)

Economics

Consider an industry that is in long-run equilibrium. An increase in demand leads to a decrease in the price of the good. We know that this is

A. a decreasing-cost industry. B. a constant cost industry. C. an increasing-cost industry. D. not a competitive industry.

Economics