According to the Coase Theorem, so long as property rights are established and transactions costs are low, plaintiffs in court cases involving externalities will not care which way a judge decides.
Answer the following statement true (T) or false (F)
False
Rationale: Plaintiffs will still care -- but the efficient outcome will happen regardless because of the sidepayments that individuals will make.
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A price-taker faces a demand curve that is:
A. upward sloping. B. horizontal at the market price. C. downward sloping. D. vertical at the market price.
Which of the following statements is CORRECT?
A) A change in the quantity demanded means a shift in the demand curve. B) A change in demand means a movement along the demand curve. C) A change in demand and change in quantity demanded means the same thing. D) A change in demand means a shift in the demand curve while change in the quantity demanded means a movement along the demand curve.
Some people attribute the rapid growth of the East Asian economies in the 1980s and 1990s to the:
A. success of their "industrial policies." B. governments picking industries to support with investments and favorable tax and trade policies. C. governments planning for growth by investing in certain industries. D. All of these are true.
As interest rates drop, households tend to borrow more and businesses tend to borrow less
Indicate whether the statement is true or false