The Idea That Even in the Presence of Externalities an Economy

question 131

Multiple Choice

The idea that even in the presence of externalities an economy can reach an efficient solution as long as transaction costs of making a deal are low and property rights are well-defined is known as:

• A)a Pigouvian tax.
• B)a network externality.
• C)a technology spillover.
• D)the Coase theorem.

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Definitions:

Emotional Stability

An individual's ability to remain calm and composed, especially in stressful situations, reflecting low levels of neuroticism.

Self-Esteem

An individual’s subjective evaluation of their own worth or value.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and emotions.

Intellectual Openness

The willingness to consider and engage with diverse perspectives, ideas, and ways of thinking.