What three conditions must be satisfied in order for the Coase theorem to work?
What will be an ideal response?
(1.) The basic rights at issue must be understood.
(2.) There must be no impediments to bargaining.
(3.) Only a few people can be involved.
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What market structures other than oligopoly have the characteristic of one firm's actions affecting the actions of its competitors? Explain your answer
What will be an ideal response?
The total amount of consumer surplus in a market is equal to the area below the demand curve
Indicate whether the statement is true or false
If future price changes were perfectly anticipated by both borrowers and lenders, then _____
a. the expected real interest rate would be higher than the actual rate b. the expected real interest rate would lower than the actual rate c. the real interest rate in the future would decrease by the amount of the price increase d. the real interest rate in the future would increase by the amount of the price increase e. the real interest rate in the future would remain unchanged
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the real GDP and the monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP rises and monetary base rises. b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.