Which of the Following Statements Is Correct

question 424

Multiple Choice

Which of the following statements is correct?

• A)The establishment of property rights sometimes gives rise to market failure.
• B)The absence of property rights sometimes gives rise to market failure.
• C)In the context of public goods, the Coase theorem implies that total surplus in some markets can be improved by the elimination of property rights.
• D)Government regulation of private behavior, in response to market failure, can never improve social well-being.

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Definitions:

Consignor

The entity or person that sends goods to another (the consignee) to be sold, while retaining ownership until the goods are sold.

Consignee

The individual or entity to whom goods are shipped under a consignment agreement, responsible for selling the goods.

Import Duties

Taxes imposed by a government on goods brought into the country, typically to protect domestic industries or generate revenue.

FOB Shipping

A shipping term indicating that the seller is responsible for delivering goods to a designated location, where the buyer becomes responsible for the goods.