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.