Microeconomics

It is clear that government provision of education is not necessary __

It is clear that government provision of education is not necessary _____. a. because of the existence of private schools b. from the size of positive externalities c. because of the lack of asymmetrical information between parents and teachers d. because education externalities are negatively inframarginal   ANSWER a  

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Date: September 9th, 2020

The Coase Theorem does not imply which of the following? a. Resources

The Coase Theorem does not imply which of the following? a. Resources will be allocated efficiently in the absence of transactions costs. b. Resources will move to their highest valued use in there are no transactions costs. c. The initial allocation of property rights does not matter to the parties involved. d. The allocation of […]

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Date: September 9th, 2020

Coase made famous a court case between a doctor and a confectioner. Su

Coase made famous a court case between a doctor and a confectioner. Suppose that exact case happened again and transactions costs were absent. When would we be sure that resources were inefficiently allocated? a. If the confectioner wins the property right to make his confections. b. If the doctor wins the right to prevent the […]

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Date: September 9th, 2020