Economics 415 clicker questions

1. Economics 415clicker questions Chapter 3 – Question Set #1

2. A Pigouvian tax is a tax should be set equal to 1. the divergence between private and social benefits. 2. the divergence between private and social costs. 3. the marginal benefit associated with the good or service. 4. none of the above. 0 of 30

3. According to the author, all of the following are drawbacks associated with the Coase Theorem except 1. transactions cost are not likely to be small. 2. an efficient market cannot develop with asymmetric prices. 3. initial allocation of property rights will not effect the market solution. 4. transaction costs are likely to be positively correlated with the numbers of parties involved. 5. none of the above. 0 of 30