When there are significant costs involved with coordinating a private solution to an externality:
A. a leader will likely be elected to organize the coordination.
B. it can act as a motivating factor to solve the externality problem expediently.
C. it likely will not happen.
D. None of these statements is true.
C. it likely will not happen.
You might also like to view...
A ________ is the price at which a trading partner is indifferent between making the trade and not doing so
A) market value B) reservation value C) shadow value D) discounted value
If the level of interest rates increases, then the current value and price of a bond paying a fixed interest payment will
A) remain unchanged since its underlying value, the interest payment is fixed. B) fall since new bonds offer higher rates. C) rise since new bonds offer higher rates. D) first rise then fall as bond investors calculate the effects of the change in rates.
The owner(s) of a corporation
A) is the entrepreneur. B) are the shareholders. C) are the bondholders. D) is the CEO.
The trade-offs between inflation and unemployment experienced in the 1970s and 1980s indicated to neo-Keynesians that the long-run Phillips curve was
a. horizontal b. upward sloping c. downward sloping d. vertical e. undefined