As income increases, consumption increases too, but not as rapidly. This is a statement of the:

According to the Coase Theorem, private solutions to externalities can lead to the socially efficient outcome when: i. transaction costs are negligible ii. property rights are clearly defined iii. the number of parties involved is small

a. (i), (ii), and (iii) b. (i) and (ii) only c. (iii) only d. (ii) and (iii) only

An example of a way employers can minimize moral hazard is to:

A. monitor employees' computer activity. B. videotape the workplace. C. offer bonuses for consistent productivity. D. All of these are ways to minimize moral hazard.