Exam 9: Beyond Markets; Property and Contracts

To make agreements that create value and can be enforced, the parties' underlying rights must be clearly defined in the contract.

Which of the following is a new law on fishing imposed by the government to increase the total supply of fish?

Which of the following statements about Coasian reasoning is true?

The _____ gives a hunter ownership rights on a bird killed by him while it was flying over his property.

Which of the following is an example of an obligation associated with a right?

In a society, if negotiation among parties leads to a politically unsatisfactory distribution of income:

The _____ is both a forum where farmers decide what their dues will purchase, and an organization that informally coerces payments from them.

Under low-cost contracting like that between beekeepers and farmers, the agreement between the two parties is not self-enforcing because:

If the costs of negotiating and enforcing contracts are _____ relative to the benefits, buyers and sellers have incentives to make economically efficient arrangements that _____ value.

Define a contract.

According to economists, an individual who tries to derive utility from the consumption of a good without paying for it is called:

Sometimes a unitization contract between two oil field owners will require them to turn operations over to a third party because each owner has an incentive to secretly increase output.

Inclusive property rights provide an investor:

Which of the following is an aim of a price-fixing agreement?

State one important consequence of Coasian reasoning on the analysis of contracts.

Contracts are usually less costly to arrange and enforce than spot market transactions, and they bring benefits that are unobtainable in spot markets.

If the costs of negotiating and enforcing contracts are high relative to the benefits, buyers and sellers will have incentives to make economically efficient arrangements that increase value.

An externality can occur when:

Suppose an individual discovers the mouth of a previously unknown cave (expected to contain a single large diamond) on his property that extends under land owned by others.To arrive at an economically efficient outcome with low transaction cost, the law will:

The following matrix represents the payoffs to oil well owners Mike and Frasel.Each of the owners know the exact amount of oil in the pool and the market price of oil. -Refer to Table .What will be the payoff to each producer in the presence of a unitization contract?