If bargaining is costless and an externality exists:
a. an efficient outcome may be reached depending on which party is assigned property rights.
b. an efficient outcome will be reached regardless of which party is assigned property rights.
c. an efficient outcome will not be reached without government intervention.
d. an efficient outcome can never be reached.
b
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Which of the following transactions would be included in the official calculation of GDP?
A) You wash and wax your father's car as a favor to him. B) You illegally download music off the Internet to put on your new iPod. C) You buy a new iPod. D) A student buys a used textbook at the bookstore. E) Firestone sells $2 million worth of tires to General Motors.
Macroeconomics is the study of ________ while microeconomics studies ________
A) large business enterprises; small business ventures B) the overall household economic activity; market behavior C) an individual firm; the overall economic performance of a nation D) the overall economic performance of the world; the economy of a single country E) none of the above