Which of the Following Describes the Idea That Private Negotiations

question 21

Multiple Choice

Which of the following describes the idea that private negotiations between people will lead to an efficient resolution of externalities, regardless of who has the property rights, as long as the property rights are defined?

• A)Adverse selection problem
• B)Internality theorem
• C)Lerner law of private property
• D)Coase theorem
• E)Tragedy of the commons

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Definitions:

Excise Taxes

Taxes imposed on specific goods, such as tobacco and alcohol, either as a fixed amount per unit or as a percentage of the price.

Regressive

Relating to a tax system that disproportionately impacts those with lower incomes, or to policies that may reverse political or social progress.

Regressive Tax

A tax imposed in such a way that the tax rate decreases as the taxable amount increases, disproportionately affecting lower-income individuals.

Payroll Tax

Levies charged on employers or workers, typically based on a proportion of the wages that staff receive from their employers.