The Coase theorem suggests that private markets may not be able to solve the problem of externalities
a. if the government does not become involved in the process.
b. when the number of interested parties is large and bargaining costs are high.
c. if the firm in the market is a monopoly.
d. if some people benefit from the externality.
b
Economics
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The actions of borrowers and lenders are coordinated by
a. the interest rate in the loanable funds market. b. the government in the resources market. c. businesses in the resources market. d. the interest rate in the goods and services market.
Economics
John Maynard Keynes believed the ideas of economists to be
a. generally incorrect. b. powerful. c. academic and without practical application. d. rantings of madmen.
Economics