The result that, under certain circumstances, no government action is needed to control an externality because it can be eliminated by bargaining between the affected parties is called
A) a Nash equilibrium.
B) Coase Theorem.
C) Bargaining Theorem.
D) English Bargaining.
B
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Refer to Figure 4-1. If the market price is $3.00, what is Kendra's consumer surplus?
A) $6.50 B) $5.50 C) $2.50 D) $0.50
According to the above table, the marginal factor cost of the seventh worker is
A) $24.00. B) $126.00. C) $42.00. D) $168.00.
Expansionary fiscal policy can cause a rise in real GDP in combination with
A. an increase in the price level. B. a decrease in the price level. C. no change in the price level. D. a decrease in the price level if the aggregate supply curve is upward sloping.
Which of the following is not a key economic question?
(A) How should it be ensured that goods and services are paid for? (B) Who consumes these goods and services? (C) How should these goods and services be produced? (D) What goods and services should be produced?