According to the Coase theorem, there will be an efficient solution to the problem of toxic waste:
a. if the creator of the toxic waste is assigned the property right and the bargaining costs are high.
b. if the victim of toxic waste is assigned the property right and the bargaining costs are high.
c. regardless of which party is assigned the property right if bargaining costs are small
d. if the property rights are shared equally between the creator and the victim of the toxic waste.
c
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The transactions motive links money demand and
A) interest rates. B) money supply. C) the liquidity trap. D) income.
Individuals cannot buy unemployment insurance for themselves. The most likely reason for this is
A. moral hazard. B. imperfect information. C. a culture of poverty. D. the free-rider problem.
Legal protections against competitors producing and selling a product identical to the one you invented are called _________; legal protections against competitors using your product's name are called __________
A. patents; trademarks B. trademarks; copyrights C. copyrights; patents D. trademarks; patents
When the consumer spends a small portion of his income on a good, demand will be
A) elastic. B) unit-elastic. C) inelastic. D) elastic, unit-elastic or inelastic depending upon supply.