According to the Coase theorem, if transactions and negotiations are costless:
a. people would arrive at agreements that maximize their individual benefits.
b. people would arrive at agreements that maximize the total economic value.
c. people would arrive at agreements that minimize their individual costs.
d. people would arrive at agreement that minimize the total social cost.
B
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An expectation of a price increase in the future would cause consumers to______ and producers to_____
a. Delay consumption; delay production b. Delay production; accelerate production c. Accelerate consumption; delay production d. Accelerate consumption; accelerate production
The Federal Reserve increases the federal funds rate. The resulting economic change will be represented by a(n): a. upward movement along the short-run Phillips curve. b. downward movement along the short-run Phillips curve. c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.