According to the Strong Coase Theorem, when will the assignment of property rights have no effect on the allocation of resources?
a. Always.
b. When there are no transactions costs.
c. When there are no transactions costs and changes in the distribution of income do not have significant effects on market demand curves.
d. When liability is assigned to the party with the least-cost method of dealing with an externality problem.
c. When there are no transactions costs and changes in the distribution of income do not have significant effects on market demand curves.
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If the inflation rate is negative, the price level in an economy is
A) falling. B) rising slowly. C) constant. D) rising rapidly.
A cooperative game is
A) companies colluding in order to make higher than competitive rates of return. B) the manner in which one oligopolist reacts to a change in price made by another oligopolist in the industry. C) a game in which firms will not negotiate in any way. D) when plans made by firms are known as game strategies.
Decreasing profit margins indicate a need to increase production in an economy
a. True b. False Indicate whether the statement is true or false
A main reason why the U.S. trade deficit grew so large from 1997 to 2000 was that
a. Congress removed all tariffs and trade restrictions on imports. b. NAFTA was introduced and Mexican exports flooded the United States. c. the international value of the dollar fell during the 1990s, which encouraged U.S. exports. d. the international value of the dollar rose in the last half of the 1990s, which encouraged U.S. imports and damaged U.S. exports.