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
“Captured” regulators end up doing exactly what the regulated industry wants. a. True b. False ANSWER b
Date: September 9th, 2020
The above figure shows a graph of a market for pizzas in a large town. At a price of $10, the market A) is not in equilibrium. B) has excess supply. C) does not have excess demand. D) All of the above. ANSWER D
Date: September 9th, 2020
Poorly defined property rights imply that _____. a. people can play their music as loud as they would like b. profit opportunities exist for entrepreneurs c. a Pareto optimum is still easily achieved d. people may be able to use resources without paying for them ANSWER d
Date: September 9th, 2020
The government has a monopoly on legitimate force. a. True b. False ANSWER a
Date: September 9th, 2020
Which of the following is not a problem with poorly defined property rights? a. Insufficient incentive exists to produce resources that cannot be protected. b. Resources will tend to be underutilized. c. Individuals may be able to use resources without paying for them. d. Little incentive to conserve on the use of poorly defined resources. […]
Date: September 9th, 2020
Government’s monopoly on force implies that government can both protect and violate rights. a. True b. False ANSWER a
Date: September 9th, 2020
