According to the Coase Theorem
a. efficiency can result only if producers hold the property rights
b. an efficient outcome is possible as long as property rights are assigned
c. efficiency is not possible in the presence of an environmental externality
d. none of the above
b. an efficient outcome is possible as long as property rights are assigned
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If the entry of new firms in a perfectly competitive industry substantially increases the market demand for resources,
a. this reduces the market price of resources. b. this raises the market price of resources. c. the market price of resources does not change. d. this lowers the ATC curves of individual firms.
Which of the following statements is not correct?
a. The median voter theorem explains why politicians appeal to the middle of the voting distribution. b. Based on studies of human decision making, most people prefer to procrastinate, both in the immediate future and in the distant future. c. Screening refers to an uninformed party trying to extract information from an informed party. d. Advertising can be an example of a company signaling the quality of its products.
A study that deals with the salaries of university professors would be considered:
A. real economics B. microeconomics C. macroeconomics D. economic naturalism
Acquisition of a company's publicly traded stock, using funds that are primarily borrowed, usually with the intent of using some of the acquired assets to pay back the loans used to acquire the company
What will be an ideal response?