According to the Coase Theorem, externality problems:
A. Do not exist in reality, because all costs and benefits are internal to firms
B. Can be solved through private negotiations without the need for government intervention
C. Must only be resolved by government action, through either taxes or subsidies
D. Can never be resolved adequately because one party always gains while the other loses
B. Can be solved through private negotiations without the need for government intervention
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Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Jack is considering whether to play the first game. If Jack only cares about the expected value of the outcome and does not care about risk, he should:
A. not play the game, since it costs $5 and the expected payoff is $5.75. B. play the game since it costs $5, and the expected payoff is $5.75. C. play the game since it costs $5.75 and the expected payoff is $5. D. not play the game since it costs $5.75 and the expected payoff is $5.
Refer to the accompanying figure. For Pat, the opportunity cost of planting one bulb is removing: 
A. 5 bags of trash. B. 20 bags of trash. C. 1/5 of a bag of trash. D. 1/20 of a bag of trash.
The balance of payments is the domestic price of a foreign currency.
Answer the following statement true (T) or false (F)
Figure 17-10
Refer to . Producer surplus with trade and without a tariff is
a.
G.
b.
C + G.
c.
A + C + G.
d.
A + B + C + G.