With the Coase theorem, the private solution yields:
A. a less efficient outcome than a government solution would.
B. the same amount of efficiency a government solution would.
C. a more efficient outcome than a government solution would.
D. None of these statements is true.
Answer: B
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A production possibilities curve is negatively sloped because: a. unemployment increases as an economy moves down along the curve
b. along the curve, production of one good must be sacrificed in order to increase production of another. c. unemployment decreases as an economy moves down along the curve. d. as the price falls, more goods are purchased.
Consider the following simple regression model y = 
0 + 1x1 + u. Suppose z is an instrument for x. if Cov(z,u) = 0 and Cov(z,x)
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A. 
B. 
C. Cov(z,u)
D. Cov(z,x)