A. The coase theorem
B. Arrow’s impossibility theorem
C. the drop -in-the bucket problem.
the free rider problem
Related Mcqs:
- According to the Coase theorem, private parties can solve the problem of externalities if ?
A. there are no transaction costs.
B. each affected party has equal power in the negotiations.
C. the party affected by the externality has the initial property right to be left alone.
D. There are a large number of affected parties.
E. the government requires them to negotiate with each other - Externalities are a problem only if ?
A. decision makers do not take them into account
B. all firms are perfectly competitive
C. the externalities are negative
D. all firms are monopolistic - Externalities arise because there is a divergence between ________ and _________?
A. private costs, private benefits
B. private costs, social costs or benefits
C. social costs, social benefit
D. insiders, outsiders - The idea the government spending causes a reduction in private investment is called ?
A. fiscal drag
B. investment blight
C. crowding-out
D. the Thatcher effects - The idea that the money supply should change to accommodate changes in aggregate demand is associated with the idea of ?
A. Margaret Thatcher
B. Ronald Reagan
C. Milton Friedman
D. John Maynard Keynes - Which exchange rate system is characterized by the absence of government intervention ?
A. Free float
B. Clean float
C. Both of them
D. None of them - Deepak Lal argues that development economics is dominated by _______ approach that favors government intervention into LDC prices?
A. dirigiste
B. Keynesian
C. Commanding heights
D. soft budget - Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?
A. Thomas will pay Roberto between €100 and €150 and Roberto will continue to play loud music
B. Roberto will pay Thomas €150 and Roberto will continue to play loud music
C. Thomas will pay Roberto between €100 and €150 and Roberto will stop playing loud music
D. Roberto will pay Thomas €100 and Roberto will stop playing loud music - An allocation is Pareto-efficient if no reallocation of resources would make some people _______ without making others ________?
A. worse off; worse off
B. better off; better off
C. better off; worse off
D. equal, unequal - In certain industries Japanese employers hesitate to lay off workers Therefore they sometimes have excess supplies of goods that they cannot sell on the home market without lowering prices. To hold down losses they sell goods in overseas markets at prices well beneath those in japan This practice is best referred to as ?
A. Orderly marketing
B. trigger pricing
C. domestic content pricing
D. dumping
