For the Coase theorem to apply, all of the following conditions must be satisfied except
A. Liability rules must be established and enforced.
B. The basic rights of the individuals must be clearly understood.
C. There must be no impediments to bargaining.
D. Only a few people can be involved.
Answer: A
You might also like to view...
Which of the following products allows the seller to identify different groups of consumers (segment the market) and practice price discrimination?
A) clothing items sold through Macy's Department Store B) a cafe latte sold at Starbucks C) tickets to matinee shows at a movie theatre D) a hamburger sold at Burger King
A price floor policy establishes a minimum price for a market. Which of the following results from a binding price floor?
A) Equilibrium B) Excess demand C) Excess supply D) Shortage
Dog owners do not bear the full cost of the noise their barking dogs create and often take too few precautions to prevent their dogs from barking. Local governments address this problem by
a. making it illegal to "disturb the peace." b. having a well-funded animal control department. c. subsidizing local animal shelters. d. encouraging people to adopt cats.
If imports are $4 billion and net exports are $4 billion, what must be the value of exports?
A. $4 billion B. $2 billion C. $0 billion D. $8 billion