Refer to Figure 13.2. The technical name given to Alice, based on her position in the figure, is the

Private solutions to externalities are most effective if ________

A) transaction costs associated with bargaining are low B) transaction costs associated with bargaining are high C) property rights are not defined clearly D) a large number of people are affected by the externalities

To say that stock prices follow a "random walk" is to argue that stock prices

A) rise, then fall, then rise again. B) rise, then fall in a predictable fashion. C) tend to follow trends. D) cannot be predicted based on past trends.