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 who gets the initial property rights
d. resources might be misallocated, regardless of who gets the initial property rights
b
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Great Britain opted out of the ERM in 1992 because its government concluded that:
A) it wanted to increase its trade with North America rather than Europe. B) the gains from being a member of the ERM outweighed the costs from higher German interest rates. C) the costs associated with higher German interest rates outweighed the gains from being a member of the ERM. D) it was unable to agree with the French on an exchange rate between the pound and the French franc.
Refer to the scenario above. This is an example of ________
A) a mixed strategy game B) an ultimatum game C) a symmetric game D) a prisoners' dilemma game