The Coase Theorem Says That, If the Appropriate Property Right

question 101

Multiple Choice

The Coase theorem says that, if the appropriate property right is assigned to ____, an efficient solution to an externality problem will be achieved.

• A) the party causing the externality
• B) the victim of the externality
• C) the party that can avoid the externality at the higher cost
• D) either one of the parties involved

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Definitions:

Anthropoids

A subgroup of primates, including humans, apes, and most monkeys, characterized by higher brain development and more complex behaviors.

Tarsiers

A genus of small, nocturnal primates with large eyes and long tails, found in Southeast Asia.

Anatomically Modern

Describing human beings that resemble modern humans in terms of skeletal structure and morphology, with features distinct from earlier forms of human ancestors.

H. Sapiens

Homo sapiens, the species name for modern humans, characterized by bipedalism and complex brain development.