What economic argument suggests that if transactions costs are sufficiently low, the post-bargaining equilibrium is economically efficient regardless of how property rights are distributed?
a. the Coase theorem
b. the laws of supply and demand
c. the law of comparative advantage
d. the law of externalities
a
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Commercial banks limit the adverse selection problem through ________
A) monitoring B) restrictive covenants C) screening D) moral hazard
Many bars close to campuses have started offering cheaper beer to consumers with a student ID. These bars
a. Assume students have a inelastic demand curve b. Assume students have an elastic demand curve c. Are practicing price discrimination d. Both b and c
Under a negative income tax system, people can make payments to or receive them from the IRS
a. True b. False Indicate whether the statement is true or false
Rapid population growth can threaten sustained economic growth if it: a. leads to diminishing marginal returns in production
b. remains unmonitored by government agencies. c. enables economies of scale in production to be exploited. d. leads to increased capital formation.