The Coase theorem states that when permits are non-tradable, the outcome will be optimal, regardless of who initially gets the permits
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Suppose that people find out that eating more fish improves their health, leading them to increase their demand for fish. As a result, the equilibrium price of fish ________ and the equilibrium quantity ________
A) rises; decreases B) rises; increases C) falls; decreases D) falls; increases
"The line distinguishing external from internal goals can be fuzzy." Discuss
What will be an ideal response?
Is it possible to have a production function that exhibits both a diminishing marginal product of labor and constant returns to scale? Explain
What will be an ideal response?
During recessions, GDP falls and unemployment increases. Why might the actual output produced not fall as much as officially measured GDP during recessions?
a. There is an increase in involuntary part-time employment during recessions, the output from which is not accounted for in GDP b. Workers who became unemployed during the recession may produce goods in the underground economy c. Unemployment benefits to laid off workers are included in GDP d. Laid off workers may start their own businesses, but profit income from self-employment is not accounted for in GDP e. Unemployed workers have more leisure time to enjoy.