"According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an agreement with the station if the property right to the airspace is
clearly defined and the transaction costs of negotiating are high." Is this statement true or false? Explain your answer.
The statement is false. The first part of the statement is correct, insofar as the property right to the airspace needs to be clearly defined. However, the second part is incorrect. In particular, if the costs of negotiating are high, Gabriel and the television station are less likely to be able to come to an agreement.
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According to classical macroeconomic theory, the price level, but not real GDP, are affected by changes in the
a) money supply. b) labor supply. c) supply schedule. d) aggregate supply.
All of the following are examples of residential investment spending except
A) the purchase of a new apartment building by a property management company. B) Sandra purchases her childhood home from her parents. C) the purchase of a new home by the MacGregor family. D) Tobias purchases a new duplex and plans to live in one half and rent the other half to his brother Dorian.