According to the Coase Theorem, individuals can always work out a mutually beneficial agreement to solve the problems of externalities even when high transaction costs are involved
a. True
b. False
Indicate whether the statement is true or false
False
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Figure 11-2
?
As we move down the production possibilities schedule in Figure 11-2, each successive point is
A. less efficient. B. more efficient. C. equally efficient. D. more or less efficient; we cannot tell which.
As the interest rate __________, the quantity supplied of money __________ and the quantity demanded of money __________
A) falls; rises; falls B) rises; remains unchanged; falls C) falls; remains unchanged; falls D) rises; rises; rises E) none of the above
Suppose the expected price level increases. Which curves in the aggregate demand and aggregate supply model would be affected, and which way would they shift?
If the price of cheese increases, the demand for hamburger buns will
A. decrease. B. remain constant. C. increase. D. shift to the right.