According to the Coase theorem, if the initial distribution of rights favors some party, market efficiency will ensure that the net benefits to that party are maximized

Indicate whether the statement is true or false

F

Economics

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A debt that rises faster than nominal GDP will impose the following opportunity costs in the future:

a. A permanently higher tax burden. b. A period of inflation. c. Reduced government outlays relative to GDP d. Higher taxes relative to GDP. e. All of the above.

Economics

You have a price-weighted index made up of two stocks, A and B) The price of A equals $30 and the price of B equals $70. What is the current value of this index? Also, what will be the percentage change in the index resulting from a 10 % increase only in the price of A? A 10% increase only in the price of B?

What will be an ideal response?

Economics