The Coase Theorem States That If Transaction Costs Are Low

question 81

Multiple Choice

The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established

• A) the government must intervene to eliminate any externalities in the market.
• B) private transactions are efficient.
• C) there will be no pollution.
• D) Both answers B and C are correct.

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Definitions:

Distributive Justice

The perceived fairness of how resources and rewards are distributed within a society or organization.

Procedural Justice

The fairness of the processes that are used to make and implement decisions, often emphasizing transparency, opportunity to voice concerns, and consistency.

Corporate Mission

A statement that outlines an organization's purpose, goals, and approach to reach those goals, guiding its strategic planning and corporate culture.

Discriminatory Event

An occurrence where an individual or group is treated unfairly based on characteristics such as race, gender, age, or disability.