If property rights are not well enforced, all of the following are likely to occur except
A) a significant number of people will be willing to risk their funds by investing them in local businesses.
B) economic efficiency will be reduced.
C) an economy will produce inside its production possibilities frontier.
D) fewer goods and services will be produced.
A
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The price elasticity of demand for a demand curve that has a zero slope is
A) zero. B) one. C) negative but approaches zero as consumption increases. D) infinity.
(Consider This) According to the Coase theorem:
A. government should levy excise taxes on firms that generate spillover or external costs. B. taxes should be levied such that they change private behavior as little as possible. C. private individuals can often negotiate their own resolution of externality problems, without the need for government intervention. D. private firms should not provide public goods.