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Even if the conditions of the Coase Theorem are not met, it may still inspire what type of solution to the problem of externalities?
Select one:
a. The creation of new price controls
b. The creation of new command-and-control responses
c. The creation of new markets
d. The creation of new taxes
Suppose that in a certain apartment, the roommates will shun one another for leaving their dirty dishes in the sink. In this case, the roommates are using _______ to prevent the tragedy of the commons.
Select one:
a. the creation of property rights
b. a command and control response
c. cultural norms
d. public provision
Professor Tabarrok said in the video that there is a “problem” with the fact that flu shots create external benefits. What’s the problem?
Select one:
a. Goods with social benefits are signs of communism.
b. People are suspicious of goods that have broad social benefits.
c. The person getting the flu shot bears all of the cost.
d. Benefits that fall on bystanders are hard to measure.
How did the government determine that increasing the energy efficiency of washing machines was the best way to achieve the goal of reducing energy consumption?
Select one:
a. Using the supply and demand model, just as Professor Tabarrok demonstrated in the video.
b. It did not determine the best way to achieve this goal, because to do so is impossible.
c. Through extensive surveys and market research.
d. It did not determine the best way to achieve this goal, since the economic impact does not depend on the approach taken to achieve the goal.
An external benefit from a transaction is a benefit to _______.
Select one:
a. bystanders.
b. sellers.
c. the government.
d. buyers.
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