Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, one necessary condition to alleviate the externality is that
A) Al is fined by the government.
B) Al has the right to leave trash and Bert cannot do anything about it.
C) Bert has the right to a clean park and Al cannot leave trash.
D) Either Al or Bert owns the park.
D
You might also like to view...
If the world price for good A is above the domestic price for good A without trade, then consumer surplus will ________ and producer surplus will ________ with trade.
A. increase; increase B. decrease; increase C. increase; decrease D. decrease; decrease
In an open economy net exports must always be positive
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying table. ________ has the comparative advantage in making pies and ________ the comparative advantage in making cakes. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. Martha; Martha B. Julia; Martha C. Martha; Julia D. Julia; Julia
?The serial correlation-robust standard errors are typically larger than the usual OLS standard errors when there is serial correlation.
Answer the following statement true (T) or false (F)