Coase theorem - Study guides, Class notes & Summaries

Which of the following statements describes the Coase Theorem? - answer-Under some circumstances private solutions to the problems that result from externalities can be found. Which of the following explains why the marginal cost curve has a hooked shape? - answer-Initially, the marginal product of labor rises, then falls. Which of following statements about demand elasticity is correct? - answer-If demand, is inelastic, an increase in price will increase total spending. Which of the fo...

Introduction, Definitions and Basics Latest Verified Review 2023 Practice Questions and Answers for Exam Preparation, 100% Correct with Explanations, Highly Recommended, Download to Score A+ Definition: Market failure, from A An economic term that encompasses a situation where, in any given market, the quantity of a product demanded by consumers does not equate to the quantity supplied by suppliers. This is a direct result of a lack of certain economically ideal factors, which prevents equilib...

100 Economics Terms Latest Update 100% Correct Scarcity the limited nature of society's resources Economics the study of how society manages its scarce resources Efficiency the property of society getting the most it can from its scarce resources Equity the property of distributing economic prosperity fairly among the members of society Opportunity cost whatever must be given up to obtain some item Market economy an economy that allocates resources through the decentralized decisions of ma...

Sapling Ch. 16 Externalities The lease on Allison's apartment will expire next month and she wants to move closer to campus. There are two apartments that she likes. Both are close to campus and in her price range. The first one is next door to a garage where local bands often practice late at night. The second one is next door to a donut shop that opens at 5 a.m. If she likes to stay up late and loves listening to all kinds of music, she will view the bands practicing as a(n): If ...

EC 238 Quizzes | Questions and Answers Why do people pollute? A. People pollute because this is the least expensive solution to the problem of what to do with their waste products leftover from production and consumption activities. B. People don't pollute, only large uncaring corporations pollute. C. People pollute only if no garbage cans are available. D. People pollute because they are inconsiderate and rude. According to the article by Diamond, why did the civilization on Easter Island co...

BCOR 1015 Final Exam 2023 Questions and Answers Verified What are Hayeks views on planning and decision making? he believes in decentralized knowledge HAYEK: what is decentralized knowledge? spreading knowledge amongst people is Hayek against centralization? yes HAYEK: how does the price system coordinate resources? price signals are used to make decisions and send information to other groups because prices are lower or higher what are price signals? signals wrapped up in incentives;...

ECON 201 Public Finance Latest Update 2023 Questions and Answers 100% Correct Highly Recommended Download to Score A 1. Positive economics (a) does not depend on market interactions. (b) only looks at the best parts of the economy. (c) ⇒examines how the economy actually works (as opposed to how it should work). (d) is very subjective. 2. The Coase theorem has problems because (a) ⇒generally, bargaining costs are not zero. (b) individuals are not concerned with others. (c) markets ...

The nominal interest rate is: - not adjusted by inflation. There can be an efficient amount of a public good provided in the private market if producers can - Overcome the non-excludability of the good Public goods are goods that are: - Non-rival in consumption, and non-excludable Cost-benefit analysis is a way to: - rank projects according to their marginal net benefits. Suppose the government provides some amount of a public good, but it results in a reduction of privat...

In order to be Economically Efficient...(2) - ANSWER-1. All actions where the Benefits > Costs should be undertaken 2. No actions where the Costs > Benefits should be undertaken What are the 2 Roles for the Government when it comes to Economic Efficiency? - ANSWER-1. Protect Individuals and Property Rights 2. Provide Goods that cannot be easily provided by the Market (Overcome Market Failure) Market Failure includes...(4) - ANSWER-1. Lack of Competition 2. Externalities 3. Un...