The Proposition That If Private Parties Can Bargain Without Cost

question 223

Multiple Choice

The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, is called

• A)the Pigovian theorem.
• B)a corrective tax.
• C)the externality theorem.
• D)the Coase theorem.

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Definitions:

Emotionality

The quality or state of being emotional; the capacity or tendency to perceive or express emotions.

Membership Disagreements

Conflicts or differences of opinion among members of a particular group or organization.

Firing a Member

The process of terminating an individual's employment due to reasons such as performance issues, behavioral problems, or company downsizing.

Sanctions

Penalties or other means of enforcement used to encourage compliance with laws or regulations.