The Coase Theorem is the proposition that private transactions are efficient if property rights exist, if only a ________ number of parties are involved, and if transactions costs are ________
A) large; low
B) large; high
C) small; low
D) small; high
C
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Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity
What happens in the market for sushi if the Surgeon General announces that a majority of the raw fish that is imported to make sushi contains high levels of toxic mercury? A) D decreases, S no change, P and Q decrease B) S decreases, D no change, P increases, Q decreases C) D no change, S increases, P decreases, Q decreases D) D and S decrease, P and Q decrease
Between 1860 and 1910, output in manufacturing, mining, and railroad freight hauling
a. expanded more rapidly than the labor force in these sectors. b. grew at about the same rate as the labor force in these sectors. c. grew more slowly than the labor force in these sectors. d. expanded, while the labor force in these sectors declined.
Opening an industry to international competition tends to:
A. increase the incidence of lazy monopolists. B. force lazy monopolists to increase efficiency. C. increase X-inefficiency. D. raise a monopolist's profit as the price is driven up.
When the percentage change in quantity demanded is less than the percentage change in price, ceteris paribus,
A. Elasticity is impossible to calculate. B. Demand is elastic. C. Demand is inelastic. D. Demand is unitary elastic.