Coase Argues That Every Case of Externalities

question 13

Multiple Choice

Coase argues that every case of externalities

• A) has a clearly identifiable cause.
• B) requires government intervention if efficiency is to be achieved.
• C) can be traced back to a principal-agent problem.
• D) is reciprocal in nature.

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Definitions:

Ice-Cream Cone

A sweet frozen dessert made from dairy and sugar, often served in a cone-shaped pastry or wafer.

Artificially Scarce Good

A good that is excludable but nonrival in consumption.

Pay-Per-View

A type of television or internet broadcasting service by which a user pays to view a specific television program or event.

Artificially Scarce

A situation where the supply of a good is limited by factors other than its physical scarcity, often due to regulatory or monopolistic practices.