The Coase theorem states that
A. positive externalities are directly related to the weather-the better the weather, the more positive externalities.
B. in the case of trivial or zero transaction costs, negative externalities are more likely to appear.
C. when transaction costs are high, positive externalities will be minimized.
D. in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.
Answer: D
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Which of the following can create a monopoly? I. high prices II. public franchise III. patent IV. government license
A) I and II B) I and III C) I, II and III D) II, III and IV
In the United States, business cycles have occurred against a backdrop of a long-run trend of:
A. declining unemployment. B. stagnant productivity growth. C. rising real GDP. D. rising inflation.