Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, the optimal level of trash in the park can be achieved if
A) Al is fined by the government.
B) Al has the right to leave trash and Bert cannot do anything about it.
C) Al has the right to leave trash and Bert can pay him to limit his dumping.
D) Bert moves.
C
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The United States is the largest consumer and importer of grains and other agricultural output in the world
a. True b. False Indicate whether the statement is true or false
The federal government is most likely to oppose
a. the purchase of a firm in danger of bankruptcy by a successful firm. b. a merger between two firms in a perfectly competitive industry. c. the purchase of one oligopolist by another in an industry with contestable markets. d. a merger between two firms in a three-firm industry.
Investment includes:
A. the purchase of medical supplies by the National Guard. B. an increase in corporate stock volumes during the year. C. an increase in government purchases. D. an increase in business inventories.
Proponents of fixed exchange rates argue that the predictability of the fixed exchange rate:
A. allows monetary policy to be used to stabilize the domestic economy. B. decreases trade and economic integration. C. increases trade and economic integration. D. prevents exchange rate overvaluation.