Which of the Following Statements Is True

question 55

Multiple Choice

Which of the following statements is true?

• A)The lower transaction costs are, the more likely individuals will solve negative externality problems through a voluntary exchange.
• B)The higher transaction costs are, the more likely individuals will solve negative externality problems through a voluntary exchange.
• C)Coase agrees with Pigou that taxing those activities associated with negative externalities is a good idea.
• D)a and c
• E)none of the above