The Coase Theorem is the proposition that if the number of involved parties is low, if property rights ________ and transactions costs are ________, then private transactions are efficient
A) are nonexistent; low
B) exist; high
C) are nonexistent; high
D) exist; low
D
You might also like to view...
Assume the First Bank of Townsville makes a loan of $2,500. This loan will
A) increase the First Bank of Townville's liabilities at the Fed. B) have no change on the quantity of money, just its composition. C) increase the First Bank of Townville's reserves. D) increase the quantity of money initially by $2,500. E) decrease the quantity of money initially by $2,500.
A country reports that it has an unplanned inventory increase of $1.0 trillion. Discuss how the economy adjusts until it reaches an unplanned inventory change of $0.0 trillion
What will be an ideal response?
A typical corn farmer won't use cost-plus-markup pricing because
A) his costs are low enough. B) he isn't interested in maximizing net revenue. C) he strives for markdown pricing, not markup pricing. D) he has no control over the market price of corn.
Advertising for Milk and Beef is usually done by
A) interest groups that represent the whole industry. B) a single firm in the market. C) a small set of firms in a market. D) It is not done because it doesn't pay to advertise homogeneous products.