Near an ocean beach, a high-rise building is being constructed that will block the scenic view of the ocean by the residents of a low-rise building. The Coase theorem suggests that this type of dispute between the owners of high-rise and low-rise
buildings:
A. Can be resolved by the owners themselves through individual bargaining
B. Has to be resolved by city government officials
C. Can only be resolved by a zoning ordinance restricting high-rise buildings
D. Should be resolved by a government fine for the builder of the high-rise
A. Can be resolved by the owners themselves through individual bargaining
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To calculate the price elasticity of demand we divide
A) the average price by the average quantity demanded. B) the percentage change in quantity demanded by the percentage change in price. C) rise by the run. D) the percentage change in price by the percentage change in quantity demanded.
According to Coase, firms
a. exist because the entrepreneur must prevent shirking b. should not exist c. should not exist if all participants in a market have perfect information d. exist because of the transaction costs of coordinating many resources through markets e. increase production costs and should therefore be limited
Which of the following owns the largest portion of the U.S. national debt?
A. State and local governments. B. The federal government. C. Foreigners. D. The private sector.
How would a decrease in the price of the feed grains used to feed cattle affect the market for beef?
A. The demand for beef would increase, increasing beef prices. B. The demand for beef would decrease, decreasing beef prices. C. The supply of beef would increase, decreasing beef prices. D. The supply of beef would decrease, increasing beef prices.