The Coase Theorem Argues That the Assignment of Property Rights

question 117

Multiple Choice

The Coase theorem argues that the assignment of property rights will generate an efficient solution to the problem of

• A)positive externalities as long as bargaining costs are small
• B)negative externalities as long as bargaining costs are small
• C)negative externalities as long as bargaining costs are great
• D)any type of market failure
• E)any type of market failure that involves high transaction costs

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Definitions:

Uterus

A muscular organ in the female reproductive system where a fertilized egg develops into a fetus.

Monozygotic Twins

Twins that originate from a single zygote splitting and developing into two individuals with nearly identical genetic makeup.

Fertilized

The state of an egg cell after it has been penetrated and combined with a sperm cell, initiating the development of a new organism.

Splits

In psychoanalysis, a defense mechanism where conflicting internal attitudes or perspectives are separated from each other and not integrated.