The Coase theorem will hold only if:
A. government will provide free mediation.
B. the transactions costs are clearly identified and assigned.
C. the contracts are enforceable.
D. None of these statements is true.
Answer: C
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In an unbalanced oligopoly, the sales of the leading firms
a. are unevenly distributed b. are larger than the sales of all other firms c. are larger than their market shares d. are smaller than in a balanced oligopoly e. grow faster than in a balanced oligopoly
One major effect of the Great Depression was
a. it reaffirmed everyone's faith that capitalism was a self-correcting system. b. it encouraged voters to limit the role of government. c. the creation of the rational expectations school of economic theory. d. a decreased faith in the ability of economies to automatically correct major problems.
Which market structure is characterized by a few interdependent firms?
A. Monopolist competition. B. Monopoly. C. Oligopoly. D. Perfect competition.
The total volume of business sales in our economy is several times larger than GDP because:
A. The GDP does not take taxes into account B. The GDP excludes intermediate transactions C. The GDP grossly understates the value of our annual output D. Total sales are in money terms and GDP is always stated in real terms