The Coase Theorem Says That, If the Appropriate Property Right

question 106

Multiple Choice

The Coase theorem says that, if the appropriate property right is assigned to __________, an efficient solution to an externality problem will be achieved.

• A)the party causing the externality
• B)the victim of the externality
• C)the party that can avoid the externality at the higher cost
• D)the party that can avoid the externality at the lower cost
• E)either one of the parties involved

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Definitions:

Compulsively

Acting driven by an irresistible urge, often against one's conscious wishes, characterized by repetitive and rigid behaviors.

Bulimia

An eating disorder marked by cycles of binge eating followed by behaviors such as vomiting or excessive exercise to prevent weight gain.

Meticulously

In a manner that shows great attention to detail; very thoroughly and precisely.

Bulimia Nervosa

An eating disorder marked by periods of binge eating followed by inappropriate compensatory behaviors such as vomiting, fasting, or excessive exercise to prevent weight gain.