The Coase theorem implies that an efficient solution is possible only if property rights are well-defined and transactions costs are low
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The desire to smooth consumption is reflected in
A) the consumer's budget constraint. B) the curvature in a consumer's indifference curves. C) choice between present and future. D) the production possibilities frontier.
Economic models are abstractions from reality
Indicate whether the statement is true or false
Which of the following statements is true?
A) The main items that comprise indirect business taxes include excise taxes, income taxes, and property taxes. B) Capital consumption allowance is also known as depreciation. C) A sales tax is an example of an indirect business tax. D) b and c E) a, b, and c
In a monopolistically competitive market, as the number of product variants decreases, the price of a particular firm's product is likely to ________ because the demand for each variety becomes more
A. increase; inelastic. B. increase; elastic. C. decrease; elastic. D. decrease; inelastic.