The Coase Theorem states that _____. a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment c. with transactions costs, the allocation of resources will be independent of property […]
The general public has strong incentives to be informed about regulations that impact them. a. True b. False ANSWER b
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 […]
Government regulations can create de facto monopoly results. a. True b. False ANSWER a
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
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
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. […]
“Captured” regulators end up doing exactly what the regulated industry wants. a. True b. False ANSWER b
The primary problem with the argument that “we agree to be coerced if everyone is coerced” to do an action is _____. a. there is no way to know whether it is true or not b. it only applies to a limited number of situations c. it only applies to actions in the public interest […]
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
