Author Question: According the Coase Theorem, the private sector can achieve social efficiency if the government: a. ... (Read 65 times)

fbq8i · **on:** Jun 30, 2018

According the Coase Theorem, the private sector can achieve social efficiency if the government:
a. establishes and enforces property rights.
b. imposes taxes to serve as proxies for external costs.
c. set rigorous environmental standards.
d. encourages competition with antitrust laws.

Question 2

The Reserve Bank of Glassen is the apex banking institution in the country of Glassen. Money supply in Glassen will increase when:
a. the Reserve Bank of Glassen buys bonds from commercial banks.
b. the Reserve Bank of Glassen raises the required reserve ratio for commercial banks.
c. the Reserve Bank of Glassen sells government bonds to commercial banks.
d. the Reserve Bank of Glassen raises the discount rate for commercial banks.
e. the Reserve Bank of Glassen prints new checks.