When property rights are assigned and transactions costs are low,
A) all costs and benefits are taken into account by the transacting parties so the transaction is efficient.
B) externalities will result in market failure.
C) the marginal social benefit curve shifts leftward and the marginal social cost curve does not shift.
D) the marginal social cost curve shifts rightward and the marginal social benefit curve does not shift.
E) the marginal social cost curve shifts rightward and the marginal social benefit curve also shifts rightward.
A
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If the price level in the United States increases more slowly than the price level in Canada, we would expect
A) interest rates in the United States to be higher than interest rates in Canada. B) the U.S. dollar to depreciate against the Canadian dollar. C) the Canadian dollar to depreciate against the U.S. dollar. D) U.S. productivity to have increased more slowly than Canadian productivity.
As an economy ______________, it can increase production and _____________.
A. uses its comparative advantage; real GDP per person B. uses its comparative advantage; monetary exchange C. moves away from specialisation; real GDP per person D. enacts a democracy; require less investment per person