When property rights are assigned and transactions costs are low,
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient.
B) externalities will result in market failure.
C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift.
D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift.
E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.
A
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During World War II, _______ percent of the United States' output was devoted to the war effort.
Fill in the blank(s) with the appropriate word(s).
If the demand for the yen increases relative to the dollar, which of the following would occur?
A) The dollar will depreciate. B) The demand for the dollar will increase. C) The yen will depreciate. D) The dollar will appreciate.
A member in a cartel can earn more profits by
A) charging a slightly lower price and raising production. B) producing less than the agreed rate. C) selling less than the agreed amount. D) none of the above.
What are the characteristic(s) of an efficient tax system?