The Coase Theorem is the proposition that private economic transactions are efficient if the number of involved parties is small, if property rights ________, and transactions costs are ________
A) exist; high
B) exist; low
C) do not exist; high
D) do not exist; low
B
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A strategy that limits defection in a repeated prisoner's dilemma game is:
A. a tit-for-tat strategy. B. an ultimatum bargaining game. C. a Nash equilibrium. D. a cartel.
In the years immediately after the American Revolution
A. both labor and capital were scarce. B. neither labor nor capital were scarce. C. labor was scarce and capital was plentiful. D. capital was scarce and labor was plentiful.
Shocks and Integration) Using the graph, which of the following has the highest degree of market integration with the other countries?
A) Peru and Colombia B) Peru and Uruguay C) Venezuela and Uruguay D) Venezuela
An increase in real income ___ the demand for real money balances and thereby causes a ___ in the nominal rate of interest.
a. lowers; rise b. lowers; fall c. raises; rise d. raises; fall