The coase theorem states that a positive

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68. The Coase theorem states thata.positive externalities are directly related to the weather-the better the weather, themore positive externalities.b.in the case of trivial or zero transaction costs, negative externalities are more likelyto appear.c.when transaction costs are high, positive externalities will be minimized.d.in the case of trivial or zero transaction costs, the property rights assignment doesnot matter to the resource-allocative outcome.ANSWER:d
POINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure,a - DISC: Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application69. The Coase theorem
b.states that economic units should specialize in the production of those goods inwhich they have a comparative advantage.c.asserts that the firm should produce that output at which marginal cost is equal tomarginal revenue.d.holds that the firm should produce that output at which marginal factor cost is equalto marginal revenue product.ANSWER:aPOINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure,a - DISC: Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application70. The Coase theorem is significant because itc
POINTS:1DIFFICULTY:ModerateNATIONAL STANDARDS:United States - BUSPROG: AnalyticLOCAL STANDARDS:United States - OH - Default City - DISC: Markets, market failure,a - DISC: Markets, market failure, and externalitiesKEYWORDS:Bloom's: Application

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Term
Fall
Professor
FOUDY
Tags
Economics, Externalities, Market failure, Externality

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