The Coase theorem states that when permits are non-tradable, the outcome will be optimal, regardless of who initially gets the permits

Refer to Figure 11-18. Starting from point E, a movement along the isocost to point F

A) decreases output but not the total cost of production. B) decreases both the total cost of production and output. C) decreases the total cost of production but not output. D) increases the total cost of production and decreases output.

Which of the following is not correct for a small open economy?

A) She cannot improve her BOT. B) She cannot affect the international price of goods. C) She cannot affect the foreign interest rate. D) All of the above.