The benefit principle views _____. a. a tax as the price that is paid for a government-supplied activity b. all government activity as beneficial c. all taxes as being beneficial if they are spent in the public interest d. all Pareto-efficient moves as beneficial ANSWER a
Date: September 9th, 2020
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 […]
Date: September 9th, 2020
In 1940 _____ of the population over 25 had a college degree. a. less than 5 percent b. around 10 percent c. around 15 percent d. more than 20 percent ANSWER a
Date: September 9th, 2020
Helping the poor is not necessarily the same thing as promoting greater equality. a. True b. False ANSWER a
Date: September 9th, 2020
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 […]
Date: September 9th, 2020
The Coase Theorem implies that when there are no costs to trading, _____. a. resources will move to their most valued uses, depending upon who gets the initial property rights b. resources will move to their most valued uses, regardless of who gets the initial property rights c. resources might be misallocated, depending upon the […]
Date: September 9th, 2020
Government regulations can create de facto monopoly results. a. True b. False ANSWER a
Date: September 9th, 2020
The Coase theorem applies to cases where _____. a. transactions costs are high b. transactions costs are obvious c. transactions costs are zero d. transactions costs are difficult to figure out ANSWER c
Date: September 9th, 2020
The Coase Theorem implies that _____. a. absent transactions costs, resources will be efficiently allocated b. absent transactions costs, resources will be inefficiently allocated c. with significant transactions costs, resources will be efficiently allocated d. with significant transactions costs, resources will be inefficiently allocated ANSWER a
Date: September 9th, 2020
The figure above shows a graph of the market for pizzas in a large town. What characterizes the equilibrium in this market? A) There is excess supply at the equilibrium price of $7. B) The government has selected the appropriate price for pizzas. C) The quantity supplied equals the quantity demanded. D) Supply equals demand. […]
Date: September 9th, 2020
