According to the Coase theorem, if transactions and negotiations are costless:
a. people would arrive at agreements that maximize their individual benefits.
b. people would arrive at agreements that maximize the total economic value.
c. people would arrive at agreements that minimize their individual costs.
d. people would arrive at agreement that minimize the total social cost.
B
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Why can exchange rates be very volatile?
What will be an ideal response?
Explain what the free market will do if exchange rates end up in the "right ranges."
What will be an ideal response?
Supporters of globalization argue that increased globalization will lead to:
a. increased living standards. b. decreased budget deficits. c. decreased trade deficits. d. currency appreciation. e. monetary stability.
The following economy produces two products.ProductsProduction Possibilities?ABCDEFTanks012345Autos10009508506503500Refer to the above table. The marginal opportunity cost of the fourth unit of tanks is:
A. 300 units of autos. B. 200 units of autos. C. 650 units of autos. D. 350 units of autos.