Examlex
With regard to the direct use of language,which of the following statements is false?
Externality
A consequence of an industrial or commercial activity which affects other parties without this being reflected in market prices.
Property Rights
Legal rights to use, control, and benefit from a resource.
Free-Rider Problem
A situation where individuals consume a public good without contributing to its cost, leading to underprovision or overuse.
Coase Theorem
A principle that asserts that if property rights are clearly defined and transaction costs are low, private negotiations will lead to the efficient resolution of disputes regardless of initial distribution of rights.
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