According to the Coase theorem, in the presence of externalities
a. private parties can bargain to reach an efficient outcome.
b. government assistance is necessary to reach an efficient outcome.
c. the assignment of legal rights can prevent externalities.
d. the initial distribution of property rights will determine the efficient outcome.
a
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Which of the following does not occur in resolving a debt crisis?
A) Debts are restructured B) Repayment periods are shortened C) Interest rates are reduced D) Some partial debt forgiveness
An increase in interest rates might be an example of a ________ policy for the purpose of ________
A) monetary; reducing inflation B) monetary; lowering unemployment C) monetary; increasing the quantity of money D) fiscal; reducing inflation E) fiscal; lowering unemployment
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
Suppose the city receives a grant that pays one half of the cost of each acre the city buys. If the cost of land is $28 per acre, the optimal park size is
A. 6. B. 2. C. 4. D. 8.
The study of how one business firm sets its prices would fall under the study of:
a. Economic growth b. Microeconomics c. Income distribution d. Macroeconomics