In an unregulated, competitive market, less than the efficient quantity of education is produced and consumed because
A) the decisions to produce and consume education are based on marginal private costs and marginal private benefits.
B) the decisions to produce and consume education are based on marginal social costs and marginal social benefits.
C) the decisions to produce and consume education are based on marginal private benefits and marginal social costs.
D) marginal private costs are consistently greater than marginal private benefits.
A
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Consider the following characteristics:
a. low transactions costs b. small levels of pollution c. high levels of pollution d. clear assignment of property rights Which of the above are assumptions behind the Coase Theorem? A) a, b, and d B) a, c, and d C) a and d D) a only
Everything else held constant, an increase in the required reserve ratio will result in ________ in M1 and ________ in M2
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
A firm that shuts down in the short run experiences losses equal to its
A) total fixed costs. B) average variable costs. C) total variable costs. D) total variable costs minus its total fixed costs.
Firms in a perfectly competitive market usually enter or leave an industry in the short-run and not in the long-run
Indicate whether the statement is true or false