The Coase solution to the problem of externalities
a. applies in every situation where externalities are present
b. only applies to activities that generate positive externalities
c. only works under perfect competition
d. only works when bargaining costs are low
e. can lead to an increase in the common pool problem
D
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Which of the following is the best example of a monopoly in the United States?
a. the U.S. Postal Service. b. the aluminum industry. c. a government-regulated public utility. d. the automobile industry.
A perfectly elastic supply curve is expressed graphically as a(n):
a. downward sloping line or curve. b. upward sloping line or curve. c. vertical line. d. horizontal line.
The CPI is used
a. to estimate from estimated to actual values b. to translate from real to nominal values c. to translate from nominal to real values d. as a policy target e. c and d
The above table shows the daily production possibilities for a nation. According to the above table, the opportunity cost of each additional car in terms of televisions
A. is meaningless because the cost of cars cannot be expressed in terms of televisions. B. remains constant. C. falls as more cars are produced. D. increases as more cars are produced.