The Proposition That,if Transaction Costs Are Low Enough and Property

question 118

Multiple Choice

The proposition that,if transaction costs are low enough and property rights are well-defined,the private market can achieve an efficient outcome,regardless of which of the affected parties hold the property rights,is known as the:

• A)Coase theorem.
• B)property rights paradigm.
• C)market rights theorem.
• D)green environment paradigm.

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Definitions:

James-Lange Theory

A theory of emotion proposing that emotions occur as a result of physiological reactions to events.

Cannon-Bard Theory

A theory of emotion that posits emotions and physiological reactions occur simultaneously and independently.

Schachter Two-factor Theory

A psychological theory which proposes that emotions are comprised of two factors: physiological arousal and cognitive label.

Common Sense Theory

An approach suggesting that people naturally form theories about their experiences and the world around them, based on everyday observations and practical reasoning.