1. If Coase Theorem is applied, transaction costs are _______ and the number of people should be ____.Select one:

a.

More, less

b.

Less, Less

c.

Less, More

d.

More, More

____________________________________________________________________________________________________________

2.

The concept of fair trade is _____.

Select one:

a.

an approach to global trade aiming to ensure that producers in developing countries receive a fair price for their products

b.

requires a market clearing or equilibrium price set by market forces

c.

a dynamic of the law of comparative advantage in which countries produce with their strengths

d.

the result of lowering barriers to trade and eliminating tariffs

________________________________________________________________________________________________________________

3. The Fixed Asset Theory says that because many agricultural assets have unlimited value outside of agriculture, when there is an increase in the prices of commodities that are produced using those assets, farmers will continue to produce for some time.

Select one:

True

False

4.

Environmental Kuznets Curve shows relationship between economic development and income inequality

Select one:

True

False

Give explanation