Author Question: Someone who says he loves his mother far more than he loves football but nonetheless attends a ... (Read 124 times)

tuffie · **on:** Jun 29, 2018

Someone who says he loves his mother far more than he loves football but nonetheless attends a football game when he could be visiting his mother

A) displays weakness of will.
B) is a hypocrite.
C) is behaving inconsistently with his own stated values.
D) places a lower marginal value on visiting his mother than on attending the football game.
E) shows that the marginal value of visiting his mother is less for him than the marginal cost of attending the football game.

Question 2

The Coase Theorem states that ________.

A) positive externalities lead to higher market prices
B) negative externalities lead to lower equilibrium output
C) transaction costs are higher in free markets
D) negotiation between economic agents leads to an efficient allocation of resources