Coase theorem Study guides, Class notes & Summaries

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...

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 ...

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 ...

Characteristics or features of rights (in the "Domain of Rights" includes - the distribution of rights that stresses equality at the expense of equity and freedom Okun suggests that a capitalist democracy - professes a double standard in its egalitarian political and social system while generating economic disparities According to Okun, an efficient economic system - will result in trade-offs between efficiency and equality Which of the following is NOT an example of a right or uni...

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...

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...

CFA Level 2 Exam 115 Questions with Answers 2023 FCFF (using EBITDA) - CORRECT ANSWER FCFF = EBIDTA(1-T) + DEP(T) - Finv - Winv Converting FIFO to LIFO COGS - CORRECT ANSWER FIFO COGS = LIFO COGS - (End LIFO Reserve - Beg LIFO reserve) Engle- Granger Test - CORRECT ANSWER Test whether 2 variables are cointegrated. Regress 1 data series against the other and check residuals for unit root. Steady State of Growth Formula - CORRECT ANSWER growth = Growth Rate TFP/1-(Labor cost in total...

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; prices can constantly adapt and update in resp...

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; prices can constantly adapt and upd...

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; prices can constantly adapt and update in resp...