Which condition(s) must exist for the Coase theorem to hold? I. Property rights must exist. II. Transactions costs must be measurable. III. A small number of parties must be involved
A) I and II only
B) I and III only
C) II and III only
D) I, II and III
B
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Several people in Neonland are expecting a sharp rise in the unemployment rate in the near future. Which of the following is likely to happen in this case?
A) The labor demand curves of firms in Neonland will shift rightward. B) Neonland's GDP will fall. C) Current consumption by households will increase. D) Investment by firms will increase.
When a reward might not occur, economists incorporate the uncertainty by multiplying the reward by a:
A) positive factor more than 1. B) positive factor less than 1. C) negative factor more than -1. D) negative factor less than -1.
The largest part of gross domestic product in the United States is
a. investment. b. consumption. c. government expenditure. d. trade balance.
When tariffs are imposed, ______ lose more than ______ gain.
a. consumers; producers and the government b. consumers and the government; importers c. producers and importers; consumers d. consumers and the government; producers