The Coase theorem states that, in the presence of cost externalities, an optimal equilibrium can be attained
A) with government taxation.
B) by prohibiting production.
C) by correctly defining property rights and through negotiation between the parties.
D) None of the above
C
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In the above table, saving must be
A) -$300 billion. B) $300 billion. C) $400 billion. D) -$400 billion.
Which of the following is not a solution to the problem of negative externalities due to pollution?
a. create private property rights b. levy pollution taxes c. create obligatory controls d. subsidize the production of the goods e. establish strict limits on the amount of pollution allowed
Export demand shocks are likely to be least disruptive to a country with
A. a fixed exchange-rate system with sterilization. B. a fixed exchange-rate system without sterilization. C. a floating exchange-rate system. D. a deficit in the current account.
Using Table 6.1, from the 1982-1984 base to 2004, prices increased 
A. by 90.3 dollars per week on monthly bills. B. 90.3%. C. 190.3%. D. 90.3 times.