The Coase Theorem is the proposition that private economic ...

[BrownTown3]

The Coase Theorem is the proposition that private economic transactions are efficient if the number of involved parties is small, if property rights ________, and transactions costs are ________.
 
  A) exist; high
  B) exist; low
  C) do not exist; high
  D) do not exist; low

Question 2

The table above gives some of the accounts of the United States in 2020.
 
  a) What is the private sector balance?
  b) What is the government sector balance?
  c) What is net exports?

[Sierray]

Answer to Question 1

B

Answer to Question 2

a) The private sector balance equals saving minus investment, or -300 billion.
b) The government sector balance equals net taxes minus government expenditure,
or 700 billion.
c) Net exports equals the sum of the private sector balance plus the government sector balance, so net exports equal 400 billion.